What problem does it solve?
Manually calculating the financial impact of M&A transactions, including pro forma EPS, synergy effects, and purchase price allocation, is time-consuming and prone to calculation errors. This Skill automates the full merger model workflow to deliver accurate, consistent analysis for deal evaluation.
Core Features & Use Cases
- Accretion/Dilution Analysis: Calculates year-by-year pro forma EPS impact for 1-3 years post-acquisition, accounting for synergies, interest adjustments, and intangible amortization.
- Sensitivity Testing: Models how changes to offer premiums, synergy levels, and cash/stock consideration mix affect deal profitability.
- Breakeven Synergy Calculation: Determines the minimum required synergies for a deal to be EPS-neutral in the first year.
- Use Case: When advising on a potential acquisition, use this Skill to quickly assess if the deal terms are accretive to shareholder value, and test different deal structures to find the most favorable terms.
Quick Start
Use the merger-model skill to build a full accretion/dilution analysis for the proposed acquisition of Target Corp by Acquirer Inc, including sensitivity tables and breakeven synergy calculations.