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How to calculate Ownership dilution

The Ownership dilution formula, with plain worked examples you can check yourself.

Ownership dilution = N ÷ (O + N) × 100

The result is a percentage (%).

Worked examples

N = 200 · O = 1800Ownership dilution = 10%
N = 200 · O = 800Ownership dilution = 20%
N = 3000 · O = 7000Ownership dilution = 30%

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Valuation & Deals.

Related terms

Due diligenceMergerAcquisitionGoodwill

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