ABC Corp. has reached $700 million in sales, and wants to buy its competitor XYZ Corp. As Finance Manager, what should you expect when you approach an investment bank to help you with the acquisition?
Select an answer:
By putting your available cash in the investment bank, you will receive a return sufficient to finance the purchase.
The investment bank will provide you with its money to help you finance the acquisition.
Someone in your neighborhood bank building understands both ABC's and XYZ's business models.
Someone will underwrite the transaction involved in purchasing XYZ.