merger-model

name merger-model description Build M&A accretion/dilution workbooks in Excel. version 1.0.0 author Anthropic (adapted by Nous Research) license Apache-2.0 platforms ["linux","macos","windows"] metadata {"hermes":{"tags":["finance","m-and-a","merger","accretion-dilution","excel","openpyxl","modeling","investment-banking"],"related_skills":["excel-author","pptx-author","dcf-model","3-statement-model"]}} Environment This skill assumes headless openpyxl — you are producing an .xlsx file on disk. Follow the excel-author skill's conventions for cell coloring, formulas, named ranges, and sensitivity tables. Recalculate before delivery: python /path/to/excel-author/scripts/recalc.py ./out/model.xlsx . Merger Model 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. 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 Data sources — MCP first, web fallback Many passages below say "use the S&P Kensho MCP / Daloopa MCP / FactSet MCP". Those are commercial financial-data MCPs from the original Cowork plugin context. In Hermes: If you have any structured financial-data MCP configured (Hermes supports MCP — see native-mcp skill), prefer it for point-in-time comps, precedent transactions, and filings. Otherwise , fall back to: web_search / web_extract against SEC EDGAR ( https://www.sec.gov/cgi-bin/browse-edgar ) for US filings Company IR pages for press releases, earnings decks browser_navigate for interactive data portals User-provided data (explicitly ask when the context doesn't have it) Never fabricate . If a multiple, precedent, or filing number can't be sourced, flag the cell as [UNSOURCED] and surface it to the user. Attribution This skill is adapted from Anthropic's Claude for Financial Services plugin suite (Apache-2.0). The Office-JS / Cowork live-Excel paths have been removed; this version targets headless openpyxl via the excel-author skill's conventions. Original: https://github.com/anthropics/financial-services