Debt takeover

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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August 24, 2017 at 5:22 am #403250
cys94
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Dear John,

When company A acquires company B, do we assume that company A will be taking over company B’s debt, meaning that after the acquisition, company A will have to pay for company’s B debt. As I noticed, sometimes the question state that it will be taking over the debt but sometimes it doesn’t state. So can I assume it debt takeover always happens?
August 24, 2017 at 6:33 am #403262
John Moffat
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It depends on the wording of the question. Usually it will be taken over, but if it is not clear to you from the wording of the question then (as always) state your assumptions.
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