Exchange Ratio


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Exchange Ratio

The number of new shares in an acquiring firm that are given for each outstanding share of an acquired firm.

Exchange Ratio

In mergers and acquisitions, the number of shares an acquiring firm distributes for each validly rendered share of the acquired company. Each exchange ratio is calculated in accordance to the merger or acquisition agreement. Factors considered in determining the ratio are the relative value of each company prior to the closing of the merger or acquisition, any potential tax advantages for both parties, and applicable regulations.
References in periodicals archive ?
All notices received after this date will receive the exchange ratio to be determined on April 15, 2010.
UN) updates the increase to the exchange ratio of the exchangeable shares of Enterra Energy Corp.
The increase in the exchange ratio of Enterra Energy Corp.
UN) (NYSE: ENT) updates the increase to the exchange ratio of the exchangeable shares of Enterra Energy Corp.
The share for share merger exchange ratio has not yet been fixed and will only be finally set in the course of the implementation of the merger process, in accordance with applicable laws.