Swap ratio

<p>In <a href="/facts/Corporate_finance/ugQCsFBQ">corporate finance</a>, the swap ratio is an <a href="/facts/Exchange_rate/R4nLyEx1">exchange rate</a> of the <a href="/facts/Share_(finance)/Tu13xJbS">shares</a> of the companies that undergo a <a href="/facts/Mergers_and_acquisitions/YfczSf3M">merger</a>; 
see <a href="/facts/Stock_swap/DMFzWppX">Stock swap</a> and <a href="/facts/Mergers_and_acquisitions/YfczSf3M">Mergers and acquisitions  § Stock</a>. 
</p><p>The swap ratio determines the control that each group of <a href="/facts/Shareholder/LjuL2KPt">shareholders</a> of the companies shall have over the combined firm: essentially a function of the <a href="/facts/Relative_value_(economics)/3kAgzXqK">relative value</a> of the strategic and <a href="/facts/Financial_result/f0g0pSKw">financial results</a> of the two companies. This ratio is thus calculated as a function of the <a href="/facts/Valuation_(finance)/ubVtk8RG">valuation</a> of the various assets and liabilities of the merging companies.

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Swap ratio open-in-new

Swap ratio