Get in Touch
Your contact details will not be shared

What is Valuation for Merger?

Before a successful merger between two companies, each of the involved parties draft a valuation report for merger. The said report, following the valuation rules for merger, analyzes the company to be acquired through price-earnings and enterprise value-sales ratios. There are two valuation methods for mergers and acquisition that evaluators follow: Relative and Direct.

Documents required for Merger Valuation

  • Latest financial statements of the target company

  • Present and past detailed financial reports that include debts and liabilities of the company

  • Business and financial plan and framework of the target company

Process of Merger Valuation

  • The asking price is analyzed to be reasonable and justified
  • Examination of debts and liabilities of the target company
  • Examination and cross-checking of financial statements
  • Reviewing the present value and future cash flow of the target company
  • Reviewing the past and future financial plans of the company

Frequently Asked Questions

  • Yes. In case of a merger, a registered valuer should value the stocks of both companies.