Need help with understanding company buyout. When company is bought for an amount. How are the long/short term debt, payables and receivables factored into the actual amount an part owner receives?
For explanation purposes, let's say offer is $10 million, long term debt is $1.5 million, short term debt $0.5 million, payables $0.5 million and receivables $1.0 million. There are 1 million shares. what is the pre-tax price per share.
Do all these factor in, some or what. I know this should be easy to answer, just not for me.
Thanks
For explanation purposes, let's say offer is $10 million, long term debt is $1.5 million, short term debt $0.5 million, payables $0.5 million and receivables $1.0 million. There are 1 million shares. what is the pre-tax price per share.
Do all these factor in, some or what. I know this should be easy to answer, just not for me.
Thanks