The assets of the acquired company are often used as collateral for the financing
This is so dumb.
“I want to buy That Car, can you give me money? I have… nothing.”
“But if you have nothing, how can we expect you to ever pay back That Car?”
“Well, after buying That Car, I will have a net worth of That Car, so paying you back obviously will be trivial using ownership of That Car.”
“Sounds like we have a deal!”



Which is why you need insurance if you buy That Car on a loan. So there’s somebody else who will pay back the loan if you fuck up That Car.
If That Car is worth a hundred billion dollars, suddenly that very important aspect just seems to vanish and you can just buy That Car with itself without any further securities.