Illus 6 & illus 36

AFM

Sir, In these both sums, exchange ratio is in line with Market price. What if they are not - in such case how should I compute the Market cap post merger...especially value of Target company - in which of the following way should I compute: 1. Sum of : M.C of Acq. company = Pre merger shares*M.P.S M.C of target company = Pre merger shares of Target*M.P.S of Target Synergy 2. Revised no of shares post merger*M.P.S of Acq company + Synergy [Video Time Stamp: 06:08] Video Details ------------- Advanced Financial Management - AFM Mergers, Acquisitions and Corporate Restructuring #56. Illustration # 36 - X & Y

Swathi S

CA Final

★ 975

09-Apr-26 16:24

Answers (1)

In such cases they will specify more clearly what they want. They may give indications of post merger PE or price If nothing is mentioned you can solve using both methods and write as alternative solution

Sriram Somayajula

Admin

09-Apr-26 17:18