Attorneys with you, every step of the way
Count on our vetted network of attorneys for guidance — no hourly charges, no office visits.
Providing access to our independent
network of attorneys over 1500 times.
Helping companies to close down operations in the smooth way
Merger Model in M&A Investment Banking
Sell-Side M&A → The client advised by the bankers is the company (or owner of the company) is seeking a partial or complete sale.
But irrespective of which side the represented client is on, the proper understanding of the mechanics of building a merger model is a critical part of the job.
Specifically, the underlying purpose of the merger model is to perform accretion / (dilution) analysis, which determines the anticipated impact of an acquisition on the earnings per share (EPS) of the acquirer upon transaction-close.
In M&A transactions, “accretion” refers to an increase in the pro forma EPS post-deal, whereas “dilution” indicates a decline in EPS after transaction-close.