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"Target" and "seller" are used interchangeably here. Usually, we say "selling shareholders" to refer specifically to the shareholders of the target company.

The source of the interest income is the fact that the Buyer and Seller both had Cash balances that they were earning a small amount of interest on pre-deal. Post-deal, that Cash persists, so they continue to earn interest on it. They will lose *some* Interest Income because of the Cash used to fund the deal and pay for transaction fees, which is what the Foregone Interest on Cash adjustment is for. But the baseline is to start with a simple combination of the Interest Income from the buyer and seller. The main point to be aware of for interviews is that you always combine the Income Statements based on the companies' existing Income Statements and capital structures, but you *adjust* them further based on the Purchase Equity Value and the % Cash, Stock, and Debt used to fund the deal.

Thank you so much for the reply! It was extremely helpful :)@@financialmodeling

It is very, very rare for buyers to "retain" (assume) the debt of public sellers because the terms of most debt state that it must be repaid in a change-of-control scenario. So the seller's existing debt is almost always refinanced in M&A deals. If it is refinanced, and the interest rate, fees, or other terms change, you may make small adjustments to reflect these (not covered here in the interest of simplicity, but it will come up in real life occasionally).

Apologies for the lack of response. I have no idea what happened here, but I just looked at all the emails we received at accounts@breakingintowallstreet.com over the past 100 days and do not see anything we failed to respond to (other than obvious spam messages that were filtered out). I can assure you that we do not just ignore people for 60 days or 90 days (which is the length of the guarantee period). I personally respond to client emails and messages even on Christmas Day and New Year's and basically have no social life because I check the site comments and emails 24/7. Maybe this is TMI, but I really have killed myself to start and operate this business and continue to do so each week. Can you please either leave a comment within the BIWS site with your question or email editor@mergersandinquisitions.com? If you cannot do that, you can also DM me or reply to a Tweet here: twitter.com/briand_mi I would suggest leaving your email or phone number here if you want us to contact you, but I assume you do not want to do that for privacy reasons.

Adding to this: I just looked at our spam messages and do not see anything recent that looks like a support request or technical question (just to be sure in case your messages were incorrectly flagged as spam). If the alternate email address does not work, you can also message me directly on LinkedIn: www.linkedin.com/in/briandechesare/ - As there should be no deliverability issues there.

@@financialmodeling As a professional, since I made those comments publicly, it’s fair to address that indeed everything has been handled quickly and smoothly and we solved the issue. Thank you again and sorry for the unfortunate situation that was accidentally created. Cheers.

@@gmtpresidential Thanks!