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How do I decide if I should value the business on Post acquisitions or pre-acquisitions basis in the question of Merger and acquisitions?
It depends on what the question is asking for and the wording of the question.
Normally it will be the post-acquisition value that is required. However if it is a share for share exchange, the shareholders in the target company will be looking at the pre-acquisition share price of the acquiring company in deciding whether or not to accept, because they do not have the information needed to be able to estimate the post-acquisition share price. (The acquiring company does have the information and so they will be looking at the post-acquisition share price when decided on how much to offer the target company.)
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