2 classes of shares in an acquisition - valuation question
So just out of curiosity, what happens what the Acquirer acquires a company that has 2 classes of shares? Say Class A and Class B, both traded on the exchange but the different is Class A is held closely by say 10 shareholders (30 shares o/s) and Class B is the one that’s mainly traded (500 shares o/s). To get the Mkt Cap of the Target or Pro-forma (also for Enterprise Value), do you add the 2 classes of shares up and that’s it? Are there any special considerations one would need to take account of?
two classes, as in common and preferred? if so, according to the enterprise value definition- yes you do add both together.
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