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Build M&A accretion dilution models with pro forma EPS and sensitivity analysis.
Copy the install command and let the AI configure it · recommended for beginners
Please install the "merger-model" skill from askskill: 1. Download https://raw.githubusercontent.com/anthropics/financial-services/main/plugins/vertical-plugins/investment-banking/skills/merger-model/SKILL.md 2. Save it as ~/.claude/skills/merger-model/SKILL.md 3. Reload skills and tell me it's ready
Build an M&A accretion/dilution model using the following: acquirer share price, shares outstanding, LTM/NTM EPS, tax rate, cash and debt; target share price, shares outstanding, net income; offer price, cash/stock mix, new debt, expected synergies, fees, and expected close date. Output Year 1-3 pro forma EPS, accretion/dilution percentages, sources and uses, and key assumptions.
A merger model framework with Year 1-3 EPS impact, sources and uses, and key assumption notes.
For this M&A deal, build accretion/dilution sensitivity tables: use synergies of 0/25/50/75/100M on one axis and offer premiums of 15%/20%/25%/30% on the other, then add the EPS impact of changing the cash/stock mix for Year 1 and Year 2.
Two sensitivity tables showing how EPS changes with synergies, premiums, and financing mix.
Turn the merger model results into a one-page merger consequences summary covering deal overview, purchase price analysis, accretion/dilution conclusion, breakeven synergies, and key drivers affecting GAAP and adjusted EPS.
A one-page merger consequences summary suitable for pitch materials or internal deal discussions.
When a team needs to quickly judge whether a potential acquisition is accretive or dilutive to the buyer's EPS, this skill can build a merger model and show Year 1-3 pro forma EPS impact.
When preparing an M&A pitch or advisory materials, it can produce a one-page merger consequences summary covering structure, purchase price, synergies, and accretion/dilution conclusions.
When evaluating different premiums, synergy assumptions, or cash/stock mixes, this skill can build sensitivity tables and breakeven synergy analysis to compare deal terms.
The documentation outlines a standard merger model workflow: gather acquirer, target, and deal inputs; perform purchase price analysis; build sources and uses; and calculate Year 1-3 pro forma EPS accretion or dilution. It then adds sensitivity analysis for synergies, offer premium, and cash/stock mix, plus breakeven synergies needed for EPS neutrality. The notes highlight key modeling issues such as GAAP versus adjusted EPS, purchase price allocation, intangible amortization, and synergy phase-in timing.
Acquirer:
Target:
Deal Terms:
| Item | Value |
|---|---|
| Offer price per share | |
| Premium to current | |
| Equity value | |
| Plus: net debt assumed | |
| Enterprise value | |
| EV / EBITDA implied | |
| P/E implied |
| Sources | $ | Uses | $ |
|---|---|---|---|
| New debt | Equity purchase price | ||
| Cash on hand | Refinance target debt | ||
| New equity issued | Transaction fees | ||
| Financing fees | |||
| Total | Total |
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) % |
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 |
Calculate the minimum synergies needed for the deal to be EPS-neutral in Year 1.
It builds M&A accretion/dilution models, analyzing pro forma EPS impact, synergy sensitivities, purchase price allocation, and how deal terms affect outcomes.
The documentation indicates you typically need acquirer and target share price, share count, EPS or net income, tax rate, cash and debt, plus offer terms, cash/stock mix, new debt, synergies, fees, and expected close date.
According to the docs, it produces a workbook with assumptions, sources and uses, pro forma income statement, accretion/dilution summary, sensitivity analysis, and breakeven synergies, plus a one-page merger consequences summary.
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