Merger Model

From the author

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".

— the description by Anthropic

AutoGineer summary

Written by AutoGineer from the skill’s own files, not by the author

The Merger Model skill provides a standardized, step-by-step procedure for financial professionals to assess the pro forma EPS impact of a potential acquisition. It guides users through the essential components of M&A modeling, including purchase price allocation, sources and uses of funds, and the calculation of accretion or dilution. By incorporating sensitivity analysis and breakeven synergy calculations, the skill helps advisors and corporate development teams quantify the financial consequences of different deal structures, consideration mixes, and synergy assumptions.

What it does

Calculates pro forma EPS impact to determine deal accretion or dilution.
Structures purchase price analysis and sources and uses of funds.
Models synergy sensitivities against offer premiums and deal consideration mixes.
Determines breakeven synergy levels required for EPS neutrality.
Generates a comprehensive Excel workbook and a one-page merger consequences summary.

When to use it

When evaluating the financial viability of a potential corporate acquisition.
During the preparation of merger consequences analysis for investment banking pitch books.
When advising clients on optimal deal terms and consideration structures.
When assessing the impact of different synergy phase-in timelines on earnings.

Advantages

Ensures consistent treatment of GAAP and adjusted EPS metrics.
Facilitates rigorous sensitivity testing for key deal variables.
Standardizes the inclusion of critical adjustments like foregone interest and intangible amortization.
Provides a clear framework for presenting complex deal impacts to stakeholders.

Usage examples

“Run a merger model for our acquisition of Company X.”: The agent will prompt for acquirer and target financial data, deal terms, and synergy estimates to generate the pro forma EPS and accretion/dilution analysis.
“What are the breakeven synergies for this deal?”: The agent calculates the minimum synergy amount required to ensure the transaction is EPS-neutral in the first year.
“Show me the accretion/dilution sensitivity for different cash/stock mixes.”: The agent generates a table comparing Year 1 and Year 2 EPS impact across various consideration ratios from 100% cash to 100% stock.

Install

Download the skill as a ZIP:
https://autogineer.com/agent-skills/anthropics/merger-model/download

Unzip it into the cross-client skills folder of your project:

mkdir -p .agents/skills && unzip merger-model.zip -d .agents/skills

Documentation by Anthropic

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

ATTRIBUTION.mdAdded by AutoGineer926 B
LICENSELicence file added by AutoGineer11.1 KiB
SKILL.md3.5 KiB

Requirements and compatibility

Written for: Claude Code, Claude apps

Works with: Claude Code, Claude apps, OpenAI Codex, GitHub Copilot, Cursor, Gemini CLI, Kiro, OpenCode, Goose, Amp, Roo Code, JetBrains Junie, Factory Droid, Devin (ex-Windsurf), Mistral Vibe, OpenHands, Letta

“Works with” means the tool reads the open Agent Skills format; a skill written for one tool may use features others lack.

Security

No issues found by our static scan· No issues found

A static scan is not a guarantee. Skills are third-party content: review a skill before you let an agent use it.

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Download ZIP

The ZIP holds the skill’s files, its licence files and an ATTRIBUTION.md. Download merger-model.zip