| name | merger-model |
| description | Use this skill when valuating a potential acquisition, preparing merger consequences analysis for a pitch, or advising on deal terms |
| executor | LLM_BEHAVIOR |
| skill_id | finance.investment_banking.merger_model_2 |
| status | ADOPTED |
| security | {"level":"high","pii":false,"approval_required":true} |
| anchors | ["finance","ai_ml","design"] |
| tier | 2 |
| input_schema | [{"name":"code_or_task","type":"string","description":"Code snippet, script, or task description to process","required":true},{"name":"context","type":"string","description":"Additional context or background information","required":false}] |
| output_schema | [{"name":"report","type":"string","description":"Analysis report or summary from merger model"}] |
Merger Model
description: 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".
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):
