What acquisition price, sources and uses, and sponsor economics create a credible transaction case?
Model profile
Merger Model
Test whether an acquisition adds to or dilutes the buyer's earnings per share, and whether its lenders can support it. Choose your own fiscal year end and transaction dates, set the offer premium, the cash and stock mix and the financing terms, decide what happens to the target's debt, options and convertibles, and see the closing balance sheet, goodwill, a pro forma forecast, IFRS and cash EPS accretion year by year, covenant headroom, debt service cover and debt capacity. Every pro forma figure is calculated on the reference merger workbook's own formulas.
Decision scope
Questions this model helps you examine
How do operating projections, cash generation, and debt paydown support the proposed capital structure?
How do exit timing, exit multiples, and downside cases affect sponsor returns and value per share?
Model capabilities
What this model includes
The profile below is generated from the same catalogue and workspace definitions used by the application.
- Dynamic dates: any fiscal year end, a close on any day in the following year, and a deal timeline
- Offer price, exchange ratio, equity purchase price, enterprise value and offer multiples
- Cash, stock, debt, preferred and common financing with fees, discounts and a balanced sources and uses
- Target options cashed out or rolled over, in-the-money convertibles converted, debt and preferred retired with penalties
- Purchase price allocation, fair value marks, deferred taxes, the limit on acquired tax losses and goodwill created
- Stub period plus nine years of pro forma income statement, balance sheet, cash flow and debt schedule
- Phased revenue synergies, COGS and SG&A savings and restructuring charges
- IFRS or US GAAP and cash EPS accretion / dilution and credit metrics, with eight model checks
- Base-rate curve with a floor, tranche pricing, tenor, amortization and cash sweep, and average-balance interest
- Covenant compliance with headroom, CFADS and DSCR, debt capacity and a lender summary with all-in yield
- The workbook's nine contemplated deal structures, plus premium, consideration and synergy sensitivity grids
Build the case
Inputs and workspaces
- Deal termsTransaction dates, accounting standard, offer premium, consideration, synergies, financing amounts, target securities and structure.
- Financing and covenantsBase-rate curve and floor, tranche pricing, tenor, amortization and sweep, lender covenants and debt-capacity targets.
- AcquirerOperating estimates, capital structure, tax and the opening balance sheet of the buyer.
- TargetOperating estimates, capital structure, tax, tax losses and the opening balance sheet of the target.
Review the result
Outputs and analysis
- Reported EPS accretion, first full yearIFRS or US GAAP, pro forma vs standalone
- Reported EPS accretion, second yearIFRS or US GAAP, pro forma vs standalone
- Cash EPS accretion, first full yearPro forma vs standalone
- Cash EPS accretion, second yearPro forma vs standalone
- Offer price per sharePer target share
- Exchange ratioAcquirer shares per target share
- Purchase priceMillions
- Enterprise valueMillions
- 7 additional metrics in the workspace
- Accretion and pro forma statementsDetailed schedules
- Transaction, financing, covenants and scenariosDetailed schedules
Designed for review
Who this model is for
- Private-equity sponsors and corporate development teams
- Investment and financial analysts
- Transaction advisers
- Investment committees and lenders
Governed evidence
The review trail stays with the result.
Each completed calculation preserves the model version, saved inputs, reporting-currency snapshot, immutable run, and result fingerprint used for its reports.
- Version-controlled calculation logic
- Saved assumptions and scenarios
- Immutable calculation runs
- Reporting context preserved in exports
Ready to explore the case?