Post-Merger Value of Combined Firm Formula
Vat = Va + Vt + S – C
Va = Value of Acquirer
Vt = Value of Target
S = Synergies
C = Cash that changes hands
*In an all stock merger, no cash leaves the company.
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Vat = Va + Vt + S – C
Va = Value of Acquirer
Vt = Value of Target
S = Synergies
C = Cash that changes hands
*In an all stock merger, no cash leaves the company.