Calculate Synergy Value
Results
Data Source and Methodology
All calculations are strictly based on the formulas and data provided by Wall Street Prep. All calculations performed by this tool are based on standard financial equations.
The Formula Explained
Synergy Value = (Target Value + Acquisition Price) × (Synergy Percentage / 100)
Glossary of Variables
- Target Company Value: The valuation of the company being acquired.
- Acquisition Price: The price paid to acquire the target company.
- Synergy Percentage: The estimated percentage increase in value due to synergies.
- Synergy Value: The additional value created by the merger or acquisition.
How It Works: A Step-by-Step Example
For example, if the target company is valued at $100 million, the acquisition price is $120 million, and the estimated synergy is 10%, the resulting synergy value would be $22 million.
Frequently Asked Questions (FAQ)
What is synergy in M&A?
Synergy in mergers and acquisitions refers to the potential financial benefit achieved through the combining of companies.
How do you calculate synergy value?
Synergy value is calculated by estimating the additional value created by the merger or acquisition.
What factors affect synergy value?
Factors include cost reductions, increased revenue, and better market positioning.
Why is synergy important in M&A?
Synergy is important because it can increase the overall value of the merged entity.
What are common types of synergies?
Common types include cost synergies, revenue synergies, and financial synergies.
Formula (LaTeX) + variables + units
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Synergy Value = (Target Value + Acquisition Price) × (Synergy Percentage / 100)
- No variables provided in audit spec.
- Wall Street Prep — wallstreetprep.com · Accessed 2026-01-19
https://www.wallstreetprep.com/knowledge/control-premium/
Last code update: 2026-01-19
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