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Gain of Acquirer Formula

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Gain of the Acquirer refers to the increase in value or benefits realized by the acquiring company as a result of the deal. Check FAQs

GAQ = S - (PT - VT)

GAQ - Gain of the Acquirer?S - Synergies Generated?PT - Price Paid for Target Company?VT - Pre Merger Value of Target Company?

Gain of Acquirer Example

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Here is how the Gain of Acquirer equation looks like with Values.

Here is how the Gain of Acquirer equation looks like with Units.

Here is how the Gain of Acquirer equation looks like.

19990 = 25000 - (10000 - 4990)

19990 = 25000 - (10000 - 4990)

19990 = 25000 - (10000 - 4990)

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Gain of Acquirer Solution

Follow our step by step solution on how to calculate Gain of Acquirer?

FIRST Step Consider the formula

GAQ = S - (PT - VT)

Next Step Substitute values of Variables

∴

GAQ = 25000 - (10000 - 4990)

Next Step Prepare to Evaluate

∴

GAQ = 25000 - (10000 - 4990)

LAST Step Evaluate

∴

GAQ = 19990

Gain of Acquirer Formula Elements

Variables

Gain of the Acquirer

Gain of the Acquirer refers to the increase in value or benefits realized by the acquiring company as a result of the deal.

Symbol: GAQ

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Gain of the Acquirer

Synergies Generated

Synergies Generated refers to the additional value that result from the combination of two companies beyond what each company could achieve independently.

Symbol: S

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Synergies Generated

Price Paid for Target Company

Price Paid for Target Company refers to the total amount of money transferred from the acquiring company to the shareholders of the target company in exchange for their ownership stake.

Symbol: PT

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Price Paid for Target Company

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.

Symbol: VT

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Pre Merger Value of Target Company

Other formulas in Mergers and Acquisitions category

Go Accretion Amount

AA = ((PB) \cdot (\frac{YTM}{APPY})) - CI

Go Takeover Premium

TPM = PT - VT

Go Post Merger Value of Merged Company

PMV = PVA + VT + S - C

Go Control Premium

CLP = \frac{TPR - MP}{EP}

How to Evaluate Gain of Acquirer?

Gain of Acquirer evaluator uses Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company) to evaluate 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 evaluate Gain of Acquirer using this online evaluator? To use this online evaluator 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.

FAQs on Gain of Acquirer

What is the formula to find Gain of Acquirer?

The formula of Gain of Acquirer is expressed as Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company). Here is an example- 19990 = 25000-(10000-4990).

How to calculate Gain of Acquirer?

With Synergies Generated (S), Price Paid for Target Company (PT) & Pre Merger Value of Target Company (VT) we can find Gain of Acquirer using the formula - Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company).

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Gain of Acquirer Formula

Gain of Acquirer Example

Gain of Acquirer Solution

Gain of Acquirer Formula Elements

Other formulas in Mergers and Acquisitions category

How to Evaluate Gain of Acquirer?

FAQs on Gain of Acquirer

Variable Name