This Exchange Ratio Excel Template is a helpful tool for investors and analysts in evaluating M&A bids and offers. Share exchange ratio represents the number of shares the acquirer needs to issue for each share of the target company in a merger and acquisition (M&A) deal. This number also includes the shares the acquirer issues to the target company as part of the stock consideration for the transaction. The formula for calculating the exchange ratio is as follows: Exchange Ratio = Offer Price for the Target's Shares / Acquirer's Share Price The exchange ratio is more useful for M&A transactions that use 100% stock consideration, or both cash and stock considerations. It helps investors and analysts understand the relative value of the offer between the two companies. If you'd like to see more examples in addition to this exchange ratio excel template, be sure to check all the Financial Model templates on CFI Marketplace.
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