> ## Documentation Index
> Fetch the complete documentation index at: https://financecontext.com/llms.txt
> Use this file to discover all available pages before exploring further.

# /merger-model

> Build an accretion/dilution merger consequences analysis

## What is Accretion/Dilution Analysis?

When one company acquires another, the combined entity's **earnings per share (EPS)** will either go up (accretive) or go down (dilutive) compared to the acquirer's standalone EPS. This analysis -- called **accretion/dilution** or **merger consequences** -- is one of the most important analyses in M\&A because it directly answers the question: "Will this deal make the acquirer's shareholders richer or poorer on a per-share basis?"

A deal is **accretive** if the target's earnings contribution (plus synergies, minus financing costs) exceeds the cost of the acquisition. It is **dilutive** if the opposite is true. Most boards of directors will not approve a deal that is materially dilutive without a compelling strategic rationale and a clear path to becoming accretive within 2-3 years.

<Note>
  Accretion/dilution analysis is performed on virtually every M\&A transaction. It is required in fairness opinions, board presentations, and proxy statements. Investment banking analysts at every bulge bracket and middle market firm build these models routinely.
</Note>

## Command Syntax

```bash theme={null}
/merger-model [acquirer] acquiring [target]
```

If acquirer and target are not provided, the command asks for deal details.

## What It Produces

An Excel workbook with:

* Assumptions tab (deal terms, financing, synergies)
* Sources and uses of funds
* Pro forma income statement
* Accretion/dilution summary (Year 1-3)
* Sensitivity tables (synergies vs. premium, cash/stock mix)
* Breakeven synergy analysis

Plus a one-page merger consequences summary for pitch book use.

## How to Customize

* To match your firm's merger model template, edit the `merger-model` skill file
* To integrate with your firm's Excel model library, configure file access in `.mcp.json`

## Related

* [merger-model skill](/en/investment-banking/skills/merger-model) -- the skill loaded by this command with full step-by-step methodology