M&A Modeling Question
Macabacus: Purchase price ratio analysis.
Hi, could someone explain to me why BuyerCo's Net Debt is negative, while TargetCo's Net Debt is positive? This is from Macabacus.
Is it because we are assuming BuyCo's cash & equivalents is > than gross debt, and although this is the case for TargetCo as well, BuyerCo needs to assume the net debt of TargetCo during the M&A process, so the net debt of target co is positive?