Gain of Acquirer Solution

STEP 0: Pre-Calculation Summary
Formula Used
Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company)
GAQ = S-(PT-VT)
This formula uses 4 Variables
Variables Used
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.
Synergies Generated - Synergies Generated refers to the additional value that result from the combination of two companies beyond what each company could achieve independently.
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.
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.
STEP 1: Convert Input(s) to Base Unit
Synergies Generated: 25000 --> No Conversion Required
Price Paid for Target Company: 10000 --> No Conversion Required
Pre Merger Value of Target Company: 4990 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
GAQ = S-(PT-VT) --> 25000-(10000-4990)
Evaluating ... ...
GAQ = 19990
STEP 3: Convert Result to Output's Unit
19990 --> No Conversion Required
FINAL ANSWER
19990 <-- Gain of the Acquirer
(Calculation completed in 00.020 seconds)

Credits

Creator Image
Created by Aashna
IGNOU (IGNOU), India
Aashna has created this Calculator and 100+ more calculators!
Verifier Image
Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
Vishnu K has verified this Calculator and 200+ more calculators!

Mergers and Acquisitions Calculators

Post Merger Value of Merged Company
​ LaTeX ​ 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
Accretion Amount
​ LaTeX ​ Go Accretion Amount = ((Purchase Basis)*(Yield to Maturity/Accrual Period Per Year))-Coupon Interest
Gain of Acquirer
​ LaTeX ​ Go Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company)
Takeover Premium
​ LaTeX ​ Go Takeover Premium = Price Paid for Target Company-Pre Merger Value of Target Company

Gain of Acquirer Formula

​LaTeX ​Go
Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company)
GAQ = S-(PT-VT)

What do you mean by Gain of Acquirer ?

Gain of Acquirer is an expected net gain to the acquirer from an acquisition. If the target company possesses complementary strengths, resources, or capabilities that align with the acquirer's strategic objectives, the combined entity can achieve synergies that enhance its competitive position and market value. By acquiring the target company, the acquirer may gain access to new markets, customers, products, or distribution channels, leading to increased revenue opportunities and growth potential. The gain of the acquirer is typically evaluated based on financial metrics such as shareholder value creation, return on investment, earnings accretion, and profitability improvements. However, it's essential to consider both quantitative and qualitative factors to assess the overall success and value creation of such a transaction for the acquirer. Additionally, achieving and sustaining the expected gains often requires effective integration, management, and execution of post-merger integration strategies.

How to Calculate Gain of Acquirer?

Gain of Acquirer calculator uses Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company) to calculate 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 calculate Gain of Acquirer using this online calculator? To use this online calculator 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. Here is how the Gain of Acquirer calculation can be explained with given input values -> 19990 = 25000-(10000-4990).

FAQ

What is Gain of 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 and is represented as GAQ = S-(PT-VT) or Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company). Synergies Generated refers to the additional value that result from the combination of two companies beyond what each company could achieve independently, 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 & Pre Merger Value of Target Company refers to its estimated worth or valuation before any merger or acquisition negotiations or discussions take place.
How to calculate Gain of 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 is calculated using Gain of the Acquirer = Synergies Generated-(Price Paid for Target Company-Pre Merger Value of Target Company). To calculate Gain of Acquirer, you need Synergies Generated (S), Price Paid for Target Company (PT) & Pre Merger Value of Target Company (VT). With our tool, you need to enter the respective value for Synergies Generated, Price Paid for Target Company & Pre Merger Value of Target Company and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!