THE COMPANIES' MERGER - STOCK SWAP RATIO CALCULATION

Nowadays, merger issue is one of the finance fields that attracts attention not only of the public, but also of financial experts and managers. The field of mergers covers group of important and specific of activities that affect many spheres of business life.

Mergers have manifested themselves as a significant integrating power and integral component of changes in transformation processes. We are witnesses that integrations are being promoted into an unavoidable process of external expansion of many companies in the world, in line with long-term market development, initially within states, and nowadays in transboundary and universal proportions. Considering the fact that they are enabling essential changes in all structures, mergers represent a dominant strategy of companies for their own position taking while waiting for new challenges of the 21st century.

Mergers constitute a legal modality of uniting companies having similar or complementary operations, but also of companies having a relation of competitiveness. There is no doubt that such a complex subject matter can be viewed from many aspects including legal, company, financial and accounting dimension. However, in this piece of work, the subject matter are financial aspects of mergers, where the most delicate part of research is the issue related to establishing the value of a company merged, and with relation to that, the calculation of a stock swap ratio.

The calculation of a stock swap ratio of companies participating in a merger has implications to all participants involved in a transaction, often with a dramatic influence on the value, as well as on risk distribution between a purchaser and the target company. Thereby, the selection of an adequate coefficient is not just a technical issue, but it also contains an economic dimension, so that it is very important to review its economic desirability and suitable. It is in the basec and theme attention of this papers.

Key words: companz, property, accounting value, marger, stock exchange, share of stock, stock swap ratio.

JEL Classification: G34