Merger Model

Integrates acquirer and target financial data to compute pro forma EPS accretion/dilution for M&A deals across three years.

1|Updated Mar 5, 2026
One-click install
npx skills add https://github.com/smrik/ai-fund --skill merger-model-smrik
Or copy as Structured Prompt for Agent
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Skill: Merger Model
Source: https://github.com/smrik/ai-fund/tree/main/skills/investment-banking/skills/merger-model
Command: npx skills add https://github.com/smrik/ai-fund --skill merger-model-smrik

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

This Skill streamlines the complex, error-prone process of evaluating M&A transactions by standardizing the calculation of pro forma EPS impact and synergy sensitivities.

Core Features & Use Cases

  • Accretion/Dilution Analysis: Automatically models the pro forma EPS impact of a potential acquisition over a three-year horizon.
  • Sensitivity Modeling: Generates tables to test how varying synergy assumptions and offer premiums affect deal viability.
  • Use Case: Use this when preparing a pitch book for a client to quickly determine if a proposed acquisition will be accretive or dilutive under different financing scenarios.

Quick Start

Use the merger model skill to calculate the pro forma EPS impact for an acquisition of Target Corp by Acquirer Inc using the provided deal terms and synergy estimates.

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 acquisition?

Pro forma EPS impact is calculated by integrating acquirer and target financial data with purchase price allocation to model accretion and dilution. This process generates multi-year income statement projections and breakeven synergy calculations for accurate deal impact summaries.

What is an accretion dilution analysis in merger modeling?

Accretion dilution analysis is a quantitative method to evaluate whether an M&A transaction increases or decreases the acquirer's pro forma earnings per share. It integrates multi-year financial projections, purchase price allocation, and financing scenarios to determine overall deal viability.

How do I build a sensitivity table for synergy assumptions in M&A deals?

Build a synergy sensitivity table by modeling varying synergy assumptions and offer premiums against different financing scenarios. This generates quantitative data showing how different synergy levels affect pro forma EPS impact and breakeven calculations, testing deal viability across multiple financial outcomes.

Can I model multi-year income statement projections for a proposed acquisition?

Yes, you can model multi-year income statement projections for a proposed acquisition. The process supports a three-year pro forma projection horizon, integrating structured financial assumptions from both acquirer and target to generate accurate deal impact summaries.

What financial data is required to run a breakeven synergy calculation?

Breakeven synergy calculation requires structured input of financial assumptions including acquirer and target financial data, deal terms, offer premiums, and financing scenarios. These inputs drive the pro forma income statement projections needed to determine the exact synergy amount required for EPS neutrality.