merger-model

Included with Lifetime

$97 forever

Build accretion/dilution analysis for M&A transactions. Models pro forma EPS impact, synergy sensitivities, and purchase price allocation. Use when evaluating a potential acquisition, preparing merger consequences analysis for a pitch, or advising on deal terms. Triggers on "merger model", "accretion dilution", "M&A model", "pro forma EPS", "merger consequences", or "deal impact analysis".

General

What this skill does


# Merger Model

## Workflow

### Step 1: Gather Inputs

**Acquirer:**
- Company name, current share price, shares outstanding
- LTM and NTM EPS (GAAP and adjusted)
- P/E multiple
- Pre-tax cost of debt, tax rate
- Cash on balance sheet, existing debt

**Target:**
- Company name, current share price, shares outstanding (if public)
- LTM and NTM EPS or net income
- Enterprise value or equity value

**Deal Terms:**
- Offer price per share (or premium to current)
- Consideration mix: % cash vs. % stock
- New debt raised to fund cash portion
- Expected synergies (revenue and cost) and phase-in timeline
- Transaction fees and financing costs
- Expected close date

### Step 2: Purchase Price Analysis

| Item | Value |
|------|-------|
| Offer price per share | |
| Premium to current | |
| Equity value | |
| Plus: net debt assumed | |
| Enterprise value | |
| EV / EBITDA implied | |
| P/E implied | |

### Step 3: Sources & Uses

| Sources | $ | Uses | $ |
|---------|---|------|---|
| New debt | | Equity purchase price | |
| Cash on hand | | Refinance target debt | |
| New equity issued | | Transaction fees | |
| | | Financing fees | |
| **Total** | | **Total** | |

### Step 4: Pro Forma EPS (Accretion / Dilution)

Calculate year-by-year (Year 1-3):

| | Standalone | Pro Forma | Accretion/(Dilution) |
|---|-----------|-----------|---------------------|
| Acquirer net income | | | |
| Target net income | | | |
| Synergies (after tax) | | | |
| Foregone interest on cash (after tax) | | | |
| New debt interest (after tax) | | | |
| Intangible amortization (after tax) | | | |
| Pro forma net income | | | |
| Pro forma shares | | | |
| **Pro forma EPS** | | | |
| **Accretion / (Dilution) %** | | | |

### Step 5: Sensitivity Analysis

**Accretion/Dilution vs. Synergies and Offer Premium:**

| | $0M syn | $25M syn | $50M syn | $75M syn | $100M syn |
|---|---------|----------|----------|----------|-----------|
| 15% premium | | | | | |
| 20% premium | | | | | |
| 25% premium | | | | | |
| 30% premium | | | | | |

**Accretion/Dilution vs. Cash/Stock Mix:**

| | 100% cash | 75/25 | 50/50 | 25/75 | 100% stock |
|---|-----------|-------|-------|-------|------------|
| Year 1 | | | | | |
| Year 2 | | | | | |

### Step 6: Breakeven Synergies

Calculate the minimum synergies needed for the deal to be EPS-neutral in Year 1.

### Step 7: Output

- Excel workbook with:
  - Assumptions tab
  - Sources & uses
  - Pro forma income statement
  - Accretion/dilution summary
  - Sensitivity tables
  - Breakeven analysis
- One-page merger consequences summary for pitch book

## Important Notes

- Always show both GAAP and adjusted (cash) EPS where relevant
- Stock deals: use acquirer's current price for exchange ratio, note dilution from new shares
- Include purchase price allocation — goodwill and intangible amortization matter for GAAP EPS
- Synergy phase-in is critical — Year 1 is often only 25-50% of run-rate synergies
- Don't forget foregone interest income on cash used and new interest expense on debt raised
- Tax rate on synergies and interest adjustments should match the acquirer's marginal rate

Files: 1

Size: 3.5 KB

Complexity: 10/100

Category: General

Source: https://github.com/anthropics/financial-services/tree/main/plugins/vertical-plugins/investment-banking/skills/merger-model

Related in General

modeling-omnistudio-epc-catalog

Included

Salesforce Industries CME EPC product-modeling skill for Product2-based catalog creation. Use when creating EPC products, configuring product attributes, building offer bundles with Product Child Items, or reviewing EPC DataPack JSON metadata for product catalog changes. TRIGGER when: user creates or updates Product2 EPC records, AttributeAssignment payloads, AttributeMetadata/AttributeDefaultValues, Offer bundles, or ProductChildItem relationships. DO NOT TRIGGER when: designing OmniScripts/FlexCards/Integration Procedures (use building-omnistudio-omniscript, building-omnistudio-flexcard, or building-omnistudio-integration-procedure), implementing Apex business logic (use generating-apex), or troubleshooting deployment pipelines (use deploying-metadata).

Generalscripts

relationship-science-coach

Included

Use this skill for direct, practical adult relationship coaching: couples conflict, repair, trust, marriage, dating, flirting, attachment patterns, emotional connection, sex, desire differences, eroticism, kink negotiation, affection, love languages, breakups, and long-term passion. Draw on Gottman, EFT and Hold Me Tight, attachment science, modern sex research, Perel, Nagoski, Kerner, Schnarch, Love and Stosny, and flexible love-language tools. Be concrete and low-hedge. Redirect only for imminent danger, abuse, coercive control, minors, non-consent, self-harm, stalking, or medical/legal/psychiatric decisions.

Generalscripts

building-sf-integrations

Included

Salesforce integration architecture and runtime plumbing with 120-point scoring. Use this skill to set up Named Credentials, External Credentials, External Services, REST/SOAP callout patterns, Platform Events, and Change Data Capture. TRIGGER when: user sets up Named Credentials, External Services, REST/SOAP callouts, Platform Events, CDC, or touches .namedCredential-meta.xml files. DO NOT TRIGGER when: Connected App/OAuth config (use configuring-connected-apps), Apex-only logic (use generating-apex), or data import/export (use handling-sf-data).

Generalscripts

venue-templates

Included

Access comprehensive LaTeX templates, formatting requirements, and submission guidelines for major scientific publication venues (Nature, Science, PLOS, IEEE, ACM), academic conferences (NeurIPS, ICML, CVPR, CHI), research posters, and grant proposals (NSF, NIH, DOE, DARPA). This skill should be used when preparing manuscripts for journal submission, conference papers, research posters, or grant proposals and need venue-specific formatting requirements and templates.

Generalscripts

let-fate-decide

Included

Draws the 12 Houses of the Zodiac Tarot spread to inject entropy into planning when prompts are vague, ambiguous, or casually delegated. Interprets the spread to guide next steps. Use when the user says 'let fate decide', 'YOLO', 'whatever', 'idk', or other nonchalant phrases, makes Yu-Gi-Oh references, or when you are about to arbitrarily pick between multiple reasonable approaches. Prefer over ask-questions-if-underspecified when the user's tone is casual or playful rather than precision-seeking.

Generalscripts

net-ops

Included

Cross-platform network troubleshooting (Windows, macOS, Linux) via local or remote shell. Use for: DNS broken, can't resolve hostnames, nslookup/dig works but apps fail, NRPT, WFP, scutil, /etc/resolver, systemd-resolved, /etc/resolv.conf, NetworkManager, VPN DNS leak residue (ProtonVPN/Mullvad/WireGuard/AnyConnect), AV/firewall blocking DNS or DoH, Tailscale DNS interaction, intermittent connectivity, remote diagnostics over SSH.

Generalscripts