What do you mean by Gain of Acquirer ?
Gain of Acquirer is an expected net gain to the acquirer from an acquisition. If the target company possesses complementary strengths, resources, or capabilities that align with the acquirer's strategic objectives, the combined entity can achieve synergies that enhance its competitive position and market value. By acquiring the target company, the acquirer may gain access to new markets, customers, products, or distribution channels, leading to increased revenue opportunities and growth potential. The gain of the acquirer is typically evaluated based on financial metrics such as shareholder value creation, return on investment, earnings accretion, and profitability improvements. However, it's essential to consider both quantitative and qualitative factors to assess the overall success and value creation of such a transaction for the acquirer. Additionally, achieving and sustaining the expected gains often requires effective integration, management, and execution of post-merger integration strategies.
How to Calculate Gain of Acquirer?
Gain of Acquirer calculator uses Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company) to calculate the Gain of the Acquirer, Gain of Acquirer is typically a comparison of the value of the combined entity post-transaction to the standalone value of the acquirer before the deal. Gain of the Acquirer is denoted by GAQ symbol.
How to calculate Gain of Acquirer using this online calculator? To use this online calculator for Gain of Acquirer, enter Synergies Generated (S), Price Paid for Target Company (PT) & Pre Merger Value of Target Company (VT) and hit the calculate button. Here is how the Gain of Acquirer calculation can be explained with given input values -> 14990 = 20000-(10000-4990).