Mergers & Acquisitions
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1) In a standalone valuation do you use options outstanding or is it option exercisable? My notes says it's exercisable b/c if the option is out of the money no one would exercise it.
2) In a LBO context, again do you use options outstanding or is it option exercisable as part of the valuation? Is exercisable b/c again if the option is out of the money why would someone exercise it.
3) In a M&A, change of control, or deal context, do you use options outstanding or is it option exercisable as part of the valuation? My notes says it is option outstanding but why? If the option is out of the money at the time of a deal no one would exercise it and thus would you not only use exercisable?
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