Hello hardworking fellows,
This question always hassles me a lot. Does purchase price = enterprise value / purchase price = equity portion of the target company?
Different source has different saying :
The purchase price represents the total enterprise value (EV) of a company including the value of its equity and debt. - https://www.divestopedia.com/definition/979/purchase-price
Source 2: In the example of Kaplan notes, purchase price sometimes only means the equity portion of the target company
I want to ask if not any specific statement, such as Company A acquired company B for a sum of XYZ. Does XYZ mean the enterprise value of the company B.