Hi .. I have a query regarding acquisition in the beer industry

Question

anonymous · Answer

Well, tell us what is your question, so we can see if we can help you.

anonymous · Answer

What is the average industry premium that companies pay for acquisition in the beer industry? and what is the correct method for calculating this premium ...On the current share price or an average for 6 months price etc.?

anonymous · Answer

In your case I don't know exactly, but basically for public companies, premiums are the overpaid value to the market cap value, if a company market value is 1.000MM and you pay 1.200MM , your premium is 200, so the average premium of a sector should be the overpaid amount that acquirers have been paying in that specific sector (past transactions). I guess the correct method is tu calculate the premium in the moment of the transaccion because past and future stock information is already included in the current price. Remember that the best guess for the company price in the future is the current price (+ delta)...