ABC Company has a premerger value of $20 million and Company XYZ has a premerger value of $2.5 million. After merging the new company is worth $25.5 million. The synergy value of the merger is 25.5 million.

Question

Quizplus · Accepted Answer

The synergy value of the merger is calculated by subtracting the sum of the individual premerger values of the companies from the post-merger value of the new company. In this case, it's $25.5 million - ($20 million + $2.5 million) = $3 million.

ABC Company Has a Premerger Value of $20 Million and Company