What generally happens to book value of a combined company after an acquisition

Hey guys. I'm not in corporate finance, so this is kind of just a side thing I'm curious about. I asked my IBD buddy but his response was "I'm a banker, all I care about is profits and revenue, I could give two shits about book value". How very banker of you, but its all in the game. I'm a value investor type (not my job), which means I'm obsessed with book value, and created a customized index at work that looks at book values.

My question: I know that when companies do stock for stock acquisitions you just add the book value. But when a company either pays by cash off BS, issues stock then pays cash, or issues debt than pays cash, what happens to book value? Would you say it generally goes up? Or stays the same?

My theory is that book value stays the same, because the company's assets are reduced by the cash they pay, and then increased by the assets and goodwill they receive from the acquired company, while the new liabilities are increased as well (I think the exception is if the company issues stock, increasing book value, then pays cash. That would then allow them to not pay from the assets they already have, meaning their book would increase after both transactions are coompleted)

But I'm no corpfin guy, so how about you bankers run a train on this one.

Would appreciate theories/answers. Thanks for your help.

 

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