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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Debt during takeover
Respected sir, If debt is taken over by acquirer during acquisition it would just add to MV of debt of combined company and wont affect synergy gains right? but if that debt is paid off by acquirer company during an acquisition will that impact synergy gains for acquirer shareholders?
No. Synergy gains only occur because the combined company make more profit than the two companies separately and because the combined company becomes less risky.
Thanks sir
You are welcome 🙂