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M&A Valuation Sequence

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1

Company Profiles

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ABC Limited

💰 Valuation$1,000,000
📊 Shares100,000
💵 Price/Share$10.00
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XYZ Limited

💰 Valuation$2,000,000
📊 Shares100,000
💵 Price/Share$20.00
💡 Key Insight
XYZ Limited has twice the valuation of ABC Limited, reflected in its $20 share price versus $10. This means XYZ Limited is worth MORE and will own MORE of the merged company.