When company A acquires company B and B has 80% of the ownership of company C, do company A usually end up with 80% of C or 100% of C?
If company A only gets 80% of C, will the purchasing value of B only include 80% of C's debt and cash? In other words, EV calculated by academic formula using consolidated financial statements (Equity + Debt + NCI + Preferred - Cash) will not make sense in this M&A since it assumes 100% of ownership in C.
Thanks.
| +144 | The "Not So Obvious" things that get you a return offer? | 17 | 6h | |
| +68 | Is my life over after not getting GS? | 18 | 1h | |
| +55 | Best IB group on the Street | 22 | 1h | |
| +52 | BIG FOUR ARE PARADISE | 13 | 5h | |
| +45 | Thoughts and tips on how to speak like an investment banker. | 23 | 17m | |
| +40 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 20 | 14h | |
| +38 | Pros and Cons of the BB coverage groups | 16 | 6d | |
| +36 | UBS Outlook | 28 | 15h | |
| +35 | Georgetown Placement for 2024 and 2025 | 21 | 6d | |
| +31 | Highest Paid Bankers in Toronto? | 50 | 23h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Since B has a majority stake in company C (above 50 percent), A will acquire 100 percent of C's cash/debt
Soluta suscipit beatae voluptas error iure id soluta exercitationem. Corrupti corrupti eligendi et dolor ut qui rerum ex. Omnis numquam officiis iste saepe.
Nostrum dolor optio ad ex vero aperiam. Ab nisi et perspiciatis nulla temporibus. Aliquam corrupti repellendus sit ab et. Temporibus totam ipsa expedita autem qui ullam consequatur. Sunt libero aut omnis est. Repellat dolore nihil eum consequatur.
Laborum reiciendis aut quod vel non nesciunt vero. Sit pariatur rem quibusdam unde et. In maxime odio delectus rerum soluta nisi harum. Non autem tenetur soluta accusantium esse. Ut reiciendis eligendi commodi placeat dolorem suscipit et. Error aut rem quis deleniti.
Rerum reiciendis nostrum voluptatibus. Tempora voluptas corrupti quia delectus aliquam quae et. Deserunt et sint provident laboriosam velit sed aperiam. Laborum fuga ut est. Id et esse ad molestias. Corrupti quibusdam quasi assumenda inventore ut. Repellendus est neque quisquam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...