DOWNTREND, IT’S TIME SHARKS GO TO BUY

DOWNTREND, IT’S TIME SHARKS GO TO BUY

 

Downtrend year go shopping growth rate increase = 10 years ago combined. 

Whoever has cash, that person is the boss. 

Rich people think differently. Let’s see what rich people do.

Equitix customers who wish to acquire a company (Seller) are advised to buy in several ways. 

Founders, owners, look at this case to have a perspective, this I choose the combination option after confirming with both cash and combining ownership after merging. 

Requirements: 

– Buyer wants money. 

– The seller wants to have money + become a shareholder of the company after the merger. 

– Synergy from the transaction increased the value of the company after the merger.

Some information about the Buyer:

– Pre-trading stock price = 35,000/share 

– Outstanding shares = 500,000 

– Pre-trading market capitalization = 17.5 billion

About Seller: 

– Pre-trading stock price = 25,000/share 

– Shares outstanding = 300,000 

– Pre-trade market capitalization = 7.5 billion

Now consider that Buyer offers to pay 15,000/share in cash and 0.5 shares of Buyer per share seller’s stock. 

Synergy from the transaction: 6 billion 

The current status of considering issuing a resolution of the Board of Directors on proposed shares to change is as follows: 

– Here, Seller receives 0.5 Shares of Buyer for 1 Share 

– Shares outstanding shares = 300,000 

– Newly issued shares = 300,000 * 0.5 = 150,000

Cash from Buyer: 

– Purchase Price = 4.5 billion 

– Seller’s pre-trade market capitalization = 17.5 billion 

– Buyer’s pre-trade market capitalization = 7.5 billion 

– Synergy (synergy) increases the company value after M&A from Transactions = 6 billion
– Cash = 4.5 billion 

– Post-merger value of the combined company = 26.5 billion 

– After the merger, total outstanding shares = 650,000 

– Post-merger share price = 40,769 VND/1 share 

– Actual purchase price = 12,115,384,115 billion 

– Seller has increased in value = 4,615 billion 

– Remaining buyer = 1,384 billion 

– Buyer’s ownership= 76.9% 

– Seller ownership = 23.1%

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