Back to Valuation questions
💰 Valuation
Hard
Company A and Company B each have $100M in revenue. A acquires B and the pro-forma revenue becomes $300M with no revenue synergies. How is this possible?
Answer
, 40% each) in a third company, Company C, which had $100M in revenue. Pre-deal, neither A nor B consolidated C (each used the equity method).
Continue reading the full answer
Plus the detailed banker explanation of what interviewers are really testing.
consolidationrevenue