Debt

Sina Amiri

Chapter 43 in Elgar Encyclopedia of Mergers and Acquisitions, 2026, pp 112-114 from Edward Elgar Publishing

Abstract: Debt plays a central role in M&A, shaping valuation, structure, risk, and performance. Acquirers use debt—often in leveraged buyouts—to gain tax benefits, optimize capital structure, preserve ownership, and enhance returns, though excessive leverage raises financial and agency risks. Target debt affects equity valuation, deal terms, and restructuring complexity, especially in distress or bankruptcy. Ultimately, combined leverage influences post-merger risk, integration, managerial behavior, and market perceptions of deal quality.

Keywords: M&A; Finance; Debt; Leverage; Restructuring; Capital structure; Value creation; Distressed acquisitions (search for similar items in EconPapers)
Date: 2026
ISBN: 9781800880856
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