Net advantage to merging

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Net advantage to merging

The difference in total post- and pre-merger market value minus the cost of the merger.

Net Advantage to Merging

A measure of whether a merger will be profitable for a company. It is calculated by subtracting the market value before the merger and its costs from the expected market value after the merger. If the number is positive, the merger will be profitable. This is an important aspect of risk analysis for both friendly takeovers and hostile takeovers.