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Post Merger Value of Merged Company Formula

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Post Merger Value of Merged Company refers to its estimated worth or valuation after the completion of a merger or acquisition transaction. Check FAQs
PMV=PVA+VT+S-C
PMV - Post Merger Value of Merged Company?PVA - Pre Merger Value of the Acquirer?VT - Pre Merger Value of Target Company?S - Synergies Generated?C - Cash Paid to Shareholders?

Post Merger Value of Merged Company Example

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Here is how the Post Merger Value of Merged Company equation looks like with Values.

Here is how the Post Merger Value of Merged Company equation looks like with Units.

Here is how the Post Merger Value of Merged Company equation looks like.

40990Edit=20000Edit+4990Edit+25000Edit-9000Edit
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HomeIcon Home » Category Financial » Category Mergers and Acquisitions » fx Post Merger Value of Merged Company

Post Merger Value of Merged Company Solution

Follow our step by step solution on how to calculate Post Merger Value of Merged Company?

FIRST Step Consider the formula
PMV=PVA+VT+S-C
Next Step Substitute values of Variables
∴ PMV=20000+4990+25000-9000
Next Step Prepare to Evaluate
∴ PMV=20000+4990+25000-9000
LAST Step Evaluate
∴PMV=40990

Post Merger Value of Merged Company Formula Elements

Variables
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.
Symbol: PMV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Post Merger Value of Merged CompanyOpen Variable
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.
Symbol: PVA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Pre Merger Value of the AcquirerOpen Variable
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 CompanyOpen Variable
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 GeneratedOpen Variable
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.
Symbol: C
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Cash Paid to ShareholdersOpen Variable

Other formulas in Mergers and Acquisitions category

​Go Accretion Amount
AA=((PB)⋅(YTMAPPY))-CI
​Go Takeover Premium
TPM=PT-VT
​Go Gain of Acquirer
GAQ=S-(PT-VT)
​Go Control Premium
CLP=TPR-MPEP

How to Evaluate Post Merger Value of Merged Company?

Post Merger Value of Merged Company evaluator 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 evaluate 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 evaluate Post Merger Value of Merged Company using this online evaluator? To use this online evaluator 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.

FAQs on Post Merger Value of Merged Company

What is the formula to find Post Merger Value of Merged Company?
The formula of Post Merger Value of Merged Company is expressed as Post Merger Value of Merged Company = Pre Merger Value of the Acquirer+Pre Merger Value of Target Company+Synergies Generated-Cash Paid to Shareholders. Here is an example- 40990 = 20000+4990+25000-9000.
How to calculate Post Merger Value of Merged Company?
With Pre Merger Value of the Acquirer (PVA), Pre Merger Value of Target Company (VT), Synergies Generated (S) & Cash Paid to Shareholders (C) we can find Post Merger Value of Merged Company using the 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.
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