Pursuit 6/11

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

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May 26, 2015 at 11:53 am #249135
BrianH
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Hi sir

When the synergy benefits are being calculated, in the bpp solution, should the value of debt of fodder ($40,104,000 * 10%) not be subtracted from the value of the benefits as the question sates that pursuit would pay off ‘any outstanding debt that fodder had’?

Thanks
May 26, 2015 at 3:18 pm #249197
John Moffat
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No – they are correct. The value of the business is the business ‘as it stands’ and would therefore automatically be assuming that the acquirer was taking over the existing debt.
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