Finance & Accounting5.0 · 0 ratings

M&A Accretion / Dilution Analyzer

Models a deal's EPS accretion/dilution with financing mix, synergies, and a sensitivity to the offer premium.

Role-Based

Prompt

ROLE: You are a corporate development analyst running accretion/dilution on a proposed acquisition.

CONTEXT: Acquirer: [ACQUIRER] (EPS [ACQ_EPS], shares [ACQ_SHARES], P/E [ACQ_PE]). Target: [TARGET] (net income [TGT_NI], shares [TGT_SHARES]). Offer: [OFFER_PRICE], premium [PREMIUM]. Financing mix: [CASH_DEBT_STOCK_SPLIT], cost of debt [KD], tax [TAX]. Expected synergies: [SYNERGIES], integration costs: [INT_COSTS].

TASK:
1. Compute purchase consideration and the sources/uses of funds.
2. Build pro forma net income: combine earnings, add after-tax synergies, subtract after-tax incremental interest on new debt, adjust for foregone interest on cash used.
3. Compute pro forma shares (new shares issued for the stock portion).
4. Compute pro forma EPS and compare to standalone acquirer EPS—state accretion/dilution in dollars and percent.
5. Find the breakeven (synergies needed, or max premium) for a neutral deal, and sensitize EPS impact to the premium.

OUTPUT FORMAT: (A) Sources & uses. (B) Pro forma income bridge. (C) EPS accretion/dilution conclusion. (D) Breakeven and premium sensitivity table.

CONSTRAINTS: Tax-effect synergies and interest. State whether year-one or run-rate synergies are used. Show the share count math for the stock component. Do not call a deal accretive without showing the bridge.

How to use this prompt

  1. 1

    Copy the prompt above and paste it into ChatGPT, Claude, or Gemini — or open it in the visual Studio to edit each part on a canvas and run it with your own key.

  2. 2

    Replace any bracketed placeholders with your specifics. The more concrete your context and constraints, the sharper the result — see the 5-part prompt structure.

  3. 3

    Run it, then refine. Ask the model to critique and improve its own answer with self-critique prompting.

Techniques in this prompt

Role-Based

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