The exchange ratio, and who ends up owning what calculator

In short

The exchange ratio, and who ends up owning what, worked through in your browser.

Interactive: the exchange ratio, and who ends up owning whatMedium

Fix a premium on the target's share price and the ratio follows. So does the split of the combined company, which is the number both boards are really arguing about.

Target share price Acquirer share price Premium offered % Target shares (m) Acquirer shares (m)

Offer value per target share: —
Exchange ratio: —
New shares issued: —
Target holders own: —
Acquirer holders keep: —
Equity consideration: —
Reading: —

A fixed ratio, struck at today's prices. Every day until completion the implied premium moves with the acquirer's shares, and nothing in the agreement moves with it. Information and education only. Not advice, not a valuation, and not a quote for anything.

The idea behind it

This calculator belongs to Mergers & Acquisitions, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.

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Not advice. This explains how something works; it is not a recommendation, and nothing here is tailored to you. You can lose everything you put in — with leveraged instruments, considerably more. StrikeAndYield is not a regulated firm and provides no financial services.

The same in full — six points, and why each one matters

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Nothing here is tailored to you. This is written for a general audience. It does not consider your objectives, financial situation, knowledge, time horizon or tolerance for loss.
The examples are simplified. Worked examples use round numbers and leave out costs, spreads, taxes, collateral, settlement and market conventions that materially change real outcomes.
The models are teaching models. Formulas shown are standard textbook formulations. Institutions add calibration, live market data and credit, funding and capital adjustments — nothing here will reproduce a dealer’s quote or produce a valuation you can rely on.
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