Tru Value methodology

Acquisition synergy valuation calculator

Tru Value separates the company being acquired from the buyer and tests the transaction from multiple perspectives. This helps prevent an attractive target valuation from being mistaken for an attractive acquisition for the buyer.

Start with stand-alone value

The acquired company is valued before transaction benefits using DCF, public-company multiples, and unaffected market references when the required inputs are available. The offer is then compared with that stand-alone range.

Model cost and revenue synergies separately

Cost synergies, the percentage realized, revenue synergies, and the portion of cost benefits that persist are distinct assumptions. The sensitivity tables vary these drivers in pairs so users can see which combinations support a conservative, expected, or aggressive price.

Translate enterprise value to offer value

Debt, cash, shares, financing mix, fees, and the pre-announcement stock price affect the amount paid and the value delivered per share. Transaction inputs are kept separate from reported financial facts so a user adjustment can be traced through the analysis.

Assess buyer impact and accretion or dilution

The buyer analysis combines financing, incremental interest, shares issued, purchase-accounting assumptions, and operating contributions. The result estimates recurring and first-year earnings effects and should be read together with leverage and ownership changes.

Use a range of methods

The Football Field brings available stand-alone and offer-value methods together without implying that every method deserves equal weight. Missing or weak evidence remains visible, and users can generate a report once a useful valuation perspective is available.

The output is an analytical aid based on public data and assumptions, not an appraisal, fairness opinion, or recommendation to complete a transaction.