A merger model represents the financial position arising on the combination of two companies.
Companies can combine in a number of ways including a merger under a mutual agreement to form a consolidated entity or an acquisition.
An M&A model is an advanced model used to evaluate the pro forma accretion/dilution of earnings per share following a merger or acquisition.
It’s common to use a single tab model for each company, where the consolidation of Company A + Company B + Combination Benefits = Merged Co.
The level of complexity can vary widely.
This model is most commonly used in investment banking and/or corporate development.
If you are looking to learn more about merger models…
We should talk.