Post Merger Share Price of Acquirer Calculator

✖Acquirer Pre Merger PE Ratio is a financial metric that indicates the valuation of the acquirer stock relative to its earnings before the merger or acquisition takes place.ⓘ Acquirer Pre Merger PE Ratio [APR]			+10% -10%
✖Acquirer Post Merger Eps involves incorporating the financial impact of the merger or acquisition into its earnings figures.ⓘ Acquirer Post Merger Eps [APE]			+10% -10%

✖Post Merger Share Price of Acquirer measures the number of shares the acquiring company has to issue for each share of the target firm.ⓘ Post Merger Share Price of Acquirer [PMSPA]

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Formula

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Post Merger Share Price of Acquirer

Formula

`"PMSPA" = "APR"*"APE"`

Example

`"1.995"="1.5"*"1.33"`

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Post Merger Share Price of Acquirer Solution

STEP 0: Pre-Calculation Summary

Formula Used

Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps
PMSPA = APR*APE
This formula uses 3 Variables

Variables Used

Post Merger Share Price of Acquirer - Post Merger Share Price of Acquirer measures the number of shares the acquiring company has to issue for each share of the target firm.
Acquirer Pre Merger PE Ratio - Acquirer Pre Merger PE Ratio is a financial metric that indicates the valuation of the acquirer stock relative to its earnings before the merger or acquisition takes place.
Acquirer Post Merger Eps - Acquirer Post Merger Eps involves incorporating the financial impact of the merger or acquisition into its earnings figures.

STEP 1: Convert Input(s) to Base Unit

Acquirer Pre Merger PE Ratio: 1.5 --> No Conversion Required
Acquirer Post Merger Eps: 1.33 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PMSPA = APR*APE --> 1.5*1.33

Evaluating ... ...

PMSPA = 1.995

STEP 3: Convert Result to Output's Unit

1.995 --> No Conversion Required

FINAL ANSWER

1.995 <-- Post Merger Share Price of Acquirer

(Calculation completed in 00.004 seconds)

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Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 10+ Mergers and Acquisitions Calculators

Post Merger Value of Merged Company

Go Post Merger Value of Merged Company = Pre Merger Value of the Acquirer+Pre Merger Value of Target Company+Synergies Generated-Cash Paid to Shareholders

Goodwill

Go Goodwill = Consideration Paid+Fair Value of Non Controlling Interest+Fair Value of Equity Previous Interest-Fair Value of Net Assets Recognized

Accretion Amount

Go Accretion Amount = ((Purchase Basis)*(Yield to Maturity/Accrual Period Per Year))-Coupon Interest

Gain of Acquirer

Go Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company)

Post Merger EPS

Go Post Merger Eps = Total Earnings of the Acquirer Post Merger/Total Number of Shares of Acquirer

Control Premium

Go Control Premium = (Takeover Price-Market Price)/Estimated Price

Post Merger Share Price of Acquirer

Go Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps

Takeover Premium

Go Takeover Premium = Price Paid for Target Company-Pre Merger Value of Target Company

Post Merger PE

Go Post Merger Pe = Weighted Average Eps of Acquirer+Weighted Average Eps of Target

Merger Arbitrage Spread

Go Merger Arbitrage Spread = Risk Premium+Risk Free Rate

Post Merger Share Price of Acquirer Formula

Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps
PMSPA = APR*APE

What do you mean by Post Merger Share Price of Acquirer ?

Post Merger Share Price of Acquirer is a measuring tool to calculate the number of shares of the acquiring company which it has to issue per share of the target firm. If the merger or acquisition is perceived as strategically beneficial and is expected to create synergies, the market may respond positively, potentially leading to an increase in the acquirer's share price. The financial performance of the combined entity following the merger can impact the acquirer's share price. If the merger results in improved financial metrics, such as increased revenue, earnings, or cash flow, it could contribute to a higher share price. Market sentiment plays a crucial role in determining the post-merger share price of the acquiring company. Positive fluctuations regarding the merger, industry conditions, or overall market trends can impact the share price higher, while negative fluctuations can have the opposite effect.

How to Calculate Post Merger Share Price of Acquirer?

Post Merger Share Price of Acquirer calculator uses Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps to calculate the Post Merger Share Price of Acquirer, Post Merger Share Price of Acquirer is the total number of shares belonging to the acquiring company which it has to issue for each share of the targeted company. Post Merger Share Price of Acquirer is denoted by PMSPA symbol.

How to calculate Post Merger Share Price of Acquirer using this online calculator? To use this online calculator for Post Merger Share Price of Acquirer, enter Acquirer Pre Merger PE Ratio (APR) & Acquirer Post Merger Eps (APE) and hit the calculate button. Here is how the Post Merger Share Price of Acquirer calculation can be explained with given input values -> 1.995 = 1.5*1.33.

FAQ

What is Post Merger Share Price of Acquirer?

Post Merger Share Price of Acquirer is the total number of shares belonging to the acquiring company which it has to issue for each share of the targeted company and is represented as PMSPA = APR*APE or Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps. Acquirer Pre Merger PE Ratio is a financial metric that indicates the valuation of the acquirer stock relative to its earnings before the merger or acquisition takes place & Acquirer Post Merger Eps involves incorporating the financial impact of the merger or acquisition into its earnings figures.

How to calculate Post Merger Share Price of Acquirer?

Post Merger Share Price of Acquirer is the total number of shares belonging to the acquiring company which it has to issue for each share of the targeted company is calculated using Post Merger Share Price of Acquirer = Acquirer Pre Merger PE Ratio*Acquirer Post Merger Eps. To calculate Post Merger Share Price of Acquirer, you need Acquirer Pre Merger PE Ratio (APR) & Acquirer Post Merger Eps (APE). With our tool, you need to enter the respective value for Acquirer Pre Merger PE Ratio & Acquirer Post Merger Eps and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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