Merger Model: How to Build a Pro Forma Combined Company
Learn how to build a merger model step by step, from sources and uses through purchase price allocation to the pro forma combined earnings per share.
Build models for real decisions: merger models, accretion/dilution, LBOs, sensitivity analysis, and break-even.
5 guides in this collection
Learn how to build a merger model step by step, from sources and uses through purchase price allocation to the pro forma combined earnings per share.
Learn how accretion/dilution analysis works, how deal structure and P/E ratios determine the outcome, and how to calculate the impact on the buyer's EPS.
Learn how leveraged buyout analysis works, how debt paydown and EBITDA growth drive equity returns, and how to calculate MOIC and IRR for an LBO.
Learn how to build one-way and two-way sensitivity tables that show how changes in WACC, growth, and terminal value assumptions shift an implied share price.
Learn how to calculate the break-even point in units and revenue, and how changes in price, costs, and volume affect profitability.