- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Good day tutor,
This has been bugging me for a long time…is it right to say that a bidder will pay for the total firm value (equity plus debt) of the target if it wishes to pay off the debt itself, but will only pay for the equity value of the target if it does not wish to settle the target’s debt obligations?
If that is right, wouldn’t it be unfair to the bidder since it will have to pay the target the debt value and THEN settle the debt in the future?
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Equity+Debt values’ is closed to new replies.