Swap ratio
In finance, a swap ratio is an exchange rate of the shares of the companies that would undergo a merger. This is calculated by the valuation of various assets and liabilities of the merging companies.[1]
The swap ratio determines the control that each group of shareholders of the companies shall have over the combined firm. It is an indicator of relative values of financial and strategic results of the company.
See also
References
This article is issued from Wikipedia - version of the 6/5/2012. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.