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Dear John Sir,
sir is not the way to find the synergy from acquisition, this way:
MV of combined co’s equity less MV of acquirer’s equity less MV of target’s equity?
And if this is the case, then why in PURSUIT CO. is MV of whole firm is used (including debt) in combined and individual firm cases, to arrive at synergy?
Regards,
Depending on the information given, and any specific approach required by the question, then either approach is fine because any benefit always belongs to the equity and not to the debt.
“MV of combined co’s equity less MV of acquirer’s equity less MV of target’s equity?”
I am getting a negative answer for synergy, when i tried following the aforementioned method.
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