Nominal Exchange Ratio tells you how many buyer’s shares a target shareholder gets for each of their shares in an acquisition deal. Even in a mixed cash + stock deal, the Nominal Exchange Ratio indicates what the stock portion would imply if the deal were 100% stock.This ratio is important because it determines how ownership is split in the combined company and plays a key role in whether target shareholders view the deal as fair and attractive.
Learn Nominal exchange Ratio with interactive examples and practice exercises in our Mergers and Acquisitions module.
This interactive learning module helps you understand Nominal exchange Ratio through hands-on practice and real-world examples.