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  • 工作学习 / 事业工作 / 请教做finance的同学 re M&A

    Company A has $1B in revenue.

    Company B has $0.5B in revenue.

    A purchased B.

    Does Company A revenue become $1.5B or 50% increase vs a year ago? If yes, the analysis is pretty misleading.

    • 不然该怎么比较?没法区分啊。
      • 我一直以为是apple to apple, 就是把2家公司合并前的financials也加在一起。看来我把读研的东东忘了。
    • Yes. Most companies will provide non-gaap comparison for major transaction. ie. without the impact of the transaction net income (or net income per share) is X.
    • there is a term called Organic Growth to avoid the misleading growth rate caused by M&A.
    • 不一定,如果b是a的供应商,那么M&A之后revenue 不会增加,但synergy可能增加销售或者降低成本从而增加profit