Assume that Company Seller's net cash is 100.000 and value of operations is 300.000. The person Buyer is ready to pay 400.000 of the shares of Company Seller and borrows this money from bank.
For above transaction, buyer establishes a company Holder which receives a loan of 400.000 and pays 400.000 of the shares of Company Seller.
After short notice, second buyer appears and wants to buy the shares of Company Seller. Company holder does not have any other operations and second buyer want to acquire the shares of company Holder.
How do you calculate the net cash in the second acquisition and does this affect to the total purchase price if we assume that there are no changes in the operations of the original company.