Displaying risk in mergers: a diagrammatic approach for exchange ratio determination
General Finance
2024-01-08 v1
Abstract
This article extends, in a stochastic setting, previous results in the determination of feasible exchange ratios for merging companies. A first outcome is that shareholders of the companies involved in the merging process face both an upper and a lower bounds for acceptable exchange ratios. Secondly, in order for the improved `bargaining region' to be intelligibly displayed, the diagrammatic approach developed by Kulpa is exploited.
Cite
@article{arxiv.2401.02681,
title = {Displaying risk in mergers: a diagrammatic approach for exchange ratio determination},
author = {Alessandra Mainini and Enrico Moretto and Daniela Visetti},
journal= {arXiv preprint arXiv:2401.02681},
year = {2024}
}