A Primer On Bootstrap Acquisitions
Pre-Closing Distribution of Assets. The target can distribute its assets to its shareholders before the acquisition. For example, a corporation worth 100 could reduce its equity value to 80 by distributing 20 of assets. The remaining equity can then be acquired for a purchase price of 80.
Pre-Closing Debt-Financed Distribution. The target can also reduce its equity value by borrowing...
To view the full article, register now.