How do the Combined Equity Value and Enterprise Value relate to the purchase method?
Enterprise value is to affected by the purchase method. It is always the sum of the 2
Equity Value depends on how much equity was used since the equations is Acquirer's equity value + value of equity used in deal = combined
In a 100% cash or debt deal, does the equity value of the target just disappear?
No, the equity of the target company is being converted into either debt or cash. Its reflected in the combined enterprise value calculation. No value is lost, just equity is converted