What problem does it solve?
This Skill helps you quantify how an M&A deal changes pro forma EPS, including accretion/dilution, synergy phase-in, financing effects, and purchase price allocation items that affect GAAP vs adjusted results.
Core Features & Use Cases
- Pro forma EPS accretion/dilution modeling (Year 1–3): Builds a bridge from standalone results to pro forma net income, pro forma shares, and resulting EPS including after-tax synergies, foregone interest on cash, new debt interest, and intangible amortization.
- Purchase price & valuation diagnostics: Converts offer terms into equity value, enterprise value, and implied multiples (EV/EBITDA and implied P/E) to support deal framing.
- Pitch-ready sensitivity outputs: Produces sensitivity tables for accretion/dilution versus synergy magnitude and offer premium, plus cash/stock mix effects and a breakeven synergy level for EPS-neutrality.
- Use Case: Use it when evaluating a potential acquisition or advising on deal terms—e.g., stress-testing whether a premium and synergy plan deliver the EPS profile expected by stakeholders.
Quick Start
Use the Merger Model Skill to generate a merger consequences Excel workbook and a one-page pitch summary for the proposed acquisition using your acquirer/target inputs, consideration mix, financing terms, and synergy assumptions.
