Exactly! Thanks for pointing this out because everyone seems to miss it.
At the moment that an investment is made, a company should be worth just as much as it was before, but will have more liquid assets because it's traded equity for cash.
The question for employees and shareholders then becomes: "Do you believe management is capable of using the cash to build additional value, or will they waste it?"
At the moment that an investment is made, a company should be worth just as much as it was before, but will have more liquid assets because it's traded equity for cash.
The question for employees and shareholders then becomes: "Do you believe management is capable of using the cash to build additional value, or will they waste it?"