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acquisition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › acquisition

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • November 28, 2017 at 12:32 am #418491
    AvatarPeiLing
    Member
    • Topics: 7
    • Replies: 6
    • ☆

    Hi john

    method of finance for an acquisition activity is refer to cash and shares for shares exchange however sources of financing is refer to debt or equity finance? Appreciate your comment.

    November 28, 2017 at 8:20 am #418561
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    Yes – if a company is being acquired then they will pay for it with cash and/or shares.
    If they are raising new finance then yes – they will raise equity and/or debt finance.

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