Merger Model

Generate merger models analyzing EPS accretion, synergy sensitivities, and purchase price allocation.

34.1k|5.1k|Updated Feb 23, 2026
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npx skills add https://github.com/anthropics/financial-services-plugins --skill merger-model-anthropics
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Skill: Merger Model
Source: https://github.com/anthropics/financial-services-plugins/tree/main/investment-banking/skills/merger-model
Command: npx skills add https://github.com/anthropics/financial-services-plugins --skill merger-model-anthropics

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

This Skill automates the creation of merger models to analyze the financial impact of M&A transactions, specifically focusing on Earnings Per Share (EPS) accretion or dilution.

Core Features & Use Cases

  • Accretion/Dilution Analysis: Calculates the pro forma EPS impact of a merger or acquisition.
  • Synergy Sensitivities: Models the impact of varying revenue and cost synergies on EPS.
  • Purchase Price Allocation: Incorporates the effects of financing mix and deal terms.
  • Use Case: When evaluating a potential acquisition, use this Skill to quickly assess how the deal will affect the acquirer's EPS and understand the key drivers of that impact.

Quick Start

Build a merger model for an acquisition, including accretion/dilution analysis and synergy sensitivities.

Frequently Asked Questions about Merger Model

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I calculate pro forma EPS impact for an M&A transaction?

To calculate pro forma EPS impact, input detailed acquirer and target financials alongside deal terms to generate an accretion/dilution analysis. This determines whether the transaction increases or decreases the acquirer's earnings per share.

What is an accretion dilution analysis and when do I need it?

Accretion dilution analysis evaluates whether an acquisition increases or decreases the acquirer's earnings per share. You need it when evaluating potential acquisitions, preparing merger consequences analysis for pitches, and advising on deal terms.

How do I model synergy sensitivities for a merger?

Model synergy sensitivities by inputting varying revenue and cost synergy expectations into the merger model. The analysis calculates how these varying synergy levels impact the pro forma earnings per share of the combined entity.

Can I analyze purchase price allocation and financing mix for a deal?

Yes, you can analyze purchase price allocation by incorporating the effects of the financing mix and specific deal terms. The model uses these inputs to determine the pro forma financial structure and EPS impact.

How do I calculate the breakeven synergy for an acquisition?

Calculate breakeven synergy by running sensitivity analyses within the merger model using detailed inputs on deal terms and financials. This identifies the exact synergy amount required for the transaction to become EPS accretive.

What financial inputs do I need to build a merger model?

Building a merger model requires detailed inputs on acquirer and target financials, deal terms, and synergy expectations. These inputs drive the pro forma EPS impact calculations and purchase price allocation.