Data Source and Methodology
Our calculations are based on the "Corporate Finance Institute" standards. Corporate Finance Institute, 2023.
All calculations are strictly based on the formulas and data provided by this source.
The Formula Explained
Glossary of Terms
- Target Price: The price offered for the target company.
- Acquirer Price: The price of the acquiring company.
- Synergies: The expected cost savings or revenue enhancements after the merger.
How It Works: A Step-by-Step Example
Consider an acquirer price of $100 million, a target price of $150 million, and synergies of $20 million. The net synergies would be calculated as $270 million based on the formula.
Frequently Asked Questions (FAQ)
What is M&A?
Merger and Acquisition (M&A) refers to the process of consolidating companies or assets through various types of financial transactions.
How are synergies calculated?
Synergies are calculated by estimating the combined cost savings and revenue enhancements post-merger.
Why use this calculator?
This calculator helps in quickly assessing the financial impact of potential M&A transactions.
What inputs are required?
Ensure to input the target price, acquirer price, and expected synergies.
Can this be used for real transactions?
This tool is for educational purposes and should not replace professional financial advice.
Formula (LaTeX) + variables + units
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Net Synergies = (Target Price + Acquirer Price + Synergies)
- No variables provided in audit spec.
- Corporate Finance Institute — corporatefinanceinstitute.com · Accessed 2026-01-19
https://corporatefinanceinstitute.com/
Last code update: 2026-01-19
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