Swap ratio
In corporate finance, the swap ratio is an exchange rate of the shares of the companies that undergo a merger;
see Stock swap and Mergers and acquisitions #Stock.
This ratio is calculated by the valuation of various assets and liabilities of the merging companies.
The swap ratio determines the control that each group of shareholders of the companies shall have over the combined firm: essentially a function of the relative value of the strategic and financial results of the two companies.
