AutoGineer
Generated banner for Merger Model
Generated logo for Merger Model

Merger Model

AnthropicOfficialPublished by Anthropic

  • Skill
  • Content generator
  • Business and productivity
  • Apache-2.0
  • No issues found
Download ZIP

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

  1. Download the skill as a ZIP:

    https://mp-staging.autogineer.com/agent-skills/anthropics/merger-model/download

  2. 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

Merger Model

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
ItemValue
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 debtEquity purchase price
Cash on handRefinance target debt
New equity issuedTransaction fees
Financing fees
TotalTotal
Step 4: Pro Forma EPS (Accretion / Dilution)

Calculate year-by-year (Year 1-3):

StandalonePro FormaAccretion/(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% cash75/2550/5025/75100% 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.md

Attribution

This folder is an unmodified copy of the Agent Skill "merger-model", distributed by AutoGineer (https://autogineer.com/agent-skills).

The skill's own files are unmodified copies. AutoGineer is not affiliated with or endorsed by the author or the publisher.

Files added by AutoGineer

  • ATTRIBUTION.md: this file, written by AutoGineer

  • LICENSE: copied from LICENSE

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.

Attribution and licence

Published by
Anthropic
Publisher
Anthropic (Official)
Source
anthropics/financial-services · plugins/vertical-plugins/investment-banking/skills/merger-model · commit 6056506
Licence
Apache License 2.0 (redistribution allowed)
  • LICENSE (added by AutoGineer from LICENSE)
  • ATTRIBUTION.md (written by AutoGineer)
Synced

AutoGineer is not affiliated with or endorsed by Anthropic.

Download ZIP

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