Merger Model

An accretion dilution analysis quantifies the impact of an M&A transaction on the acquirer's pro forma earnings per share. This merger model automates the full calculation, projecting EPS under various deal structures and financing mixes.

Purchase price allocation in a merger model distributes the acquisition cost across the target's tangible and intangible assets. This process establishes the goodwill and depreciation schedules needed for accurate pro forma income statement calculations.

Calculating pro forma EPS with different financing structures requires modeling sources and uses of funds alongside synergy scenarios. The model adjusts the share count for stock financing and interest expense for debt to measure the EPS impact.

You can run sensitivity scenarios for M&A synergies and deal economics by adjusting inputs like financing mix and synergy timing. The model generates structured outputs comparing these variations to support robust acquisition decision making.

The best way to outline sources and uses for an acquisition is mapping the enterprise value, funding requirements, and financing sources. This model structures the sources and uses table to directly feed the pro forma calculations and EPS impact.