Post Merger Value of Merged Company Calculator

✖Pre Merger Value of the Acquirer refers to its estimated worth or valuation before proceeding in a merger or acquisition transaction.ⓘ Pre Merger Value of the Acquirer [PVA]			+10% -10%
✖Pre Merger Value of Target Company refers to its estimated worth or valuation before any merger or acquisition negotiations or discussions take place.ⓘ Pre Merger Value of Target Company [VT]			+10% -10%
✖Synergies Generated refers to the additional value that result from the combination of two companies beyond what each company could achieve independently.ⓘ Synergies Generated [S]			+10% -10%
✖Cash Paid to Shareholders refers to the amount of money transferred from the acquiring company to the shareholders of the target company in exchange for their shares.ⓘ Cash Paid to Shareholders [C]			+10% -10%

✖Post Merger Value of Merged Company refers to its estimated worth or valuation after the completion of a merger or acquisition transaction.ⓘ Post Merger Value of Merged Company [PMV]

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Formula

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Post Merger Value of Merged Company

Formula

`"PMV" = "PVA"+"VT"+"S"-"C"`

Example

`"35990"="20000"+"4990"+"20000"-"9000"`

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Post Merger Value of Merged Company Solution

STEP 0: Pre-Calculation Summary

Formula Used

Post Merger Value of Merged Company = Pre Merger Value of the Acquirer+Pre Merger Value of Target Company+Synergies Generated-Cash Paid to Shareholders
PMV = PVA+VT+S-C
This formula uses 5 Variables

Variables Used

Post Merger Value of Merged Company - Post Merger Value of Merged Company refers to its estimated worth or valuation after the completion of a merger or acquisition transaction.
Pre Merger Value of the Acquirer - Pre Merger Value of the Acquirer refers to its estimated worth or valuation before proceeding in a merger or acquisition transaction.
Pre Merger Value of Target Company - Pre Merger Value of Target Company refers to its estimated worth or valuation before any merger or acquisition negotiations or discussions take place.
Synergies Generated - Synergies Generated refers to the additional value that result from the combination of two companies beyond what each company could achieve independently.
Cash Paid to Shareholders - Cash Paid to Shareholders refers to the amount of money transferred from the acquiring company to the shareholders of the target company in exchange for their shares.

STEP 1: Convert Input(s) to Base Unit

Pre Merger Value of the Acquirer: 20000 --> No Conversion Required
Pre Merger Value of Target Company: 4990 --> No Conversion Required
Synergies Generated: 20000 --> No Conversion Required
Cash Paid to Shareholders: 9000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PMV = PVA+VT+S-C --> 20000+4990+20000-9000

Evaluating ... ...

PMV = 35990

STEP 3: Convert Result to Output's Unit

35990 --> No Conversion Required

FINAL ANSWER

35990 <-- Post Merger Value of Merged Company

(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

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< 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 Value of Merged Company Formula

Post Merger Value of Merged Company = Pre Merger Value of the Acquirer+Pre Merger Value of Target Company+Synergies Generated-Cash Paid to Shareholders
PMV = PVA+VT+S-C

What do you mean by Post Merger Value of Merged Company ?

Post Merger Value of Merged Company represents the combined value of the merging entities after they have been integrated into a single entity. Assessing the synergies expected to result from the merger, such as cost savings, revenue enhancements, operational efficiencies, and strategic advantages. These synergies contribute to the overall value of the combined entity. Analyzing the financial projections and performance of the merged company, including revenue growth, profitability, cash flow generation, and return on investment. This helps to estimate the company's future earnings potential and value. The post-merger value represents the combined entity's value to shareholders and stakeholders, reflecting the synergies, growth prospects, competitive advantages, and strategic positioning resulting from the merger. It is an important metric used to assess the success and value creation of a merger and acquisition transaction.

How to Calculate Post Merger Value of Merged Company?

Post Merger Value of Merged Company calculator uses Post Merger Value of Merged Company = Pre Merger Value of the Acquirer+Pre Merger Value of Target Company+Synergies Generated-Cash Paid to Shareholders to calculate the Post Merger Value of Merged Company, Post Merger Value of Merged Company refers to the estimated worth or valuation of a company following the completion of a merger or acquisition transaction. Post Merger Value of Merged Company is denoted by PMV symbol.

How to calculate Post Merger Value of Merged Company using this online calculator? To use this online calculator for Post Merger Value of Merged Company, enter Pre Merger Value of the Acquirer (PVA), Pre Merger Value of Target Company (VT), Synergies Generated (S) & Cash Paid to Shareholders (C) and hit the calculate button. Here is how the Post Merger Value of Merged Company calculation can be explained with given input values -> 35990 = 20000+4990+20000-9000.

FAQ

What is Post Merger Value of Merged Company?

Post Merger Value of Merged Company refers to the estimated worth or valuation of a company following the completion of a merger or acquisition transaction and is represented as PMV = PVA+VT+S-C or Post Merger Value of Merged Company = Pre Merger Value of the Acquirer+Pre Merger Value of Target Company+Synergies Generated-Cash Paid to Shareholders. Pre Merger Value of the Acquirer refers to its estimated worth or valuation before proceeding in a merger or acquisition transaction, Pre Merger Value of Target Company refers to its estimated worth or valuation before any merger or acquisition negotiations or discussions take place, Synergies Generated refers to the additional value that result from the combination of two companies beyond what each company could achieve independently & Cash Paid to Shareholders refers to the amount of money transferred from the acquiring company to the shareholders of the target company in exchange for their shares.

How to calculate Post Merger Value of Merged Company?

Post Merger Value of Merged Company refers to the estimated worth or valuation of a company following the completion of a merger or acquisition transaction is calculated using Post Merger Value of Merged Company = Pre Merger Value of the Acquirer+Pre Merger Value of Target Company+Synergies Generated-Cash Paid to Shareholders. To calculate Post Merger Value of Merged Company, you need Pre Merger Value of the Acquirer (PVA), Pre Merger Value of Target Company (VT), Synergies Generated (S) & Cash Paid to Shareholders (C). With our tool, you need to enter the respective value for Pre Merger Value of the Acquirer, Pre Merger Value of Target Company, Synergies Generated & Cash Paid to Shareholders 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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