Merger Model

To build a merger model for accretion and dilution, input the acquirer, target, and deal terms to generate pro forma financials. This calculates the purchase price allocation, sources and uses, and resulting EPS impact for deal evaluation.

Pro forma EPS impact in M&A transactions measures how an acquisition affects the combined entity's earnings per share. It determines whether a deal is accretive (increasing EPS) or dilutive (decreasing EPS) by modeling synergies, financing mix, and close date scenarios.

Run sensitivity analysis on M&A synergy ranges and financing structures by modeling various deal scenarios within the merger consequences analysis. This generates sensitivity tables showing pro forma EPS effects under multiple financing and synergy outcomes to inform pitch decisions.

Yes, you can generate pitch-ready merger consequences summaries for deal negotiations. The model produces structured outputs including sources and uses, a pro forma income statement, and decision-ready sensitivity tables quantifying deal impact for presentations.

Inputs needed for purchase price allocation in a merger model include financial data for the acquirer and target, along with specific deal terms. These inputs drive the purchase price allocation, pro forma income statement, and accretion-dilution analysis.

Merger modeling works for evaluating deal terms and close date scenarios by incorporating transaction timing into the pro forma financials. Adjusting the close date affects the partial-year synergies and financing costs recognized in the pro forma EPS calculation.