Hi Kari,

If a private company is buying a public company, they are almost certainly taking them private. If they are not, and just want a controlling stake, they need >50% of the shares.

In both scenarios, the purchasing company will never have a share price.

In terms of the acquired company, the acquisition cost will be [# shares] X [price per share] X [some % factor higher]. This is because the share price represents the most recent trade but not all trades require to get the desired # of shares.

If you've studied economics, you'll know that there is a supply/demand curve. As such, any additional purchase of shares will have to be made at a higher price than the current market rate. The case should guide you on this, but it could be anywhere from 10-50% higher than the market rate (on average).

Hello!

It´s very difficult to talk in general terms.

However, the deal price -that is negotiated each time- can be formed in many different ways (e.g., EBIDTA muldtiple per a multiple + synergies multiplied for another multiple)

In any case, don´t worry, since this is not in the scope of an M&A MBB case.

Best regards,

Clara

Hi,

Once the acquisition made public, the share price of the target usually will increase as market react to the news. The purchase price will usually a premium compared to market price.

For your second questions, Francesco already provide the correct approach.

Best,
Iman