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Merger Model
Build accretion/dilution (merger) models in Excel — pro-forma P&L, synergies, financing mix, EPS impact. Pairs with excel-author. Use for M&A pitches, board materials, or deal evaluation.
Skill metadata
| Source | Optional — install with hermes skills install official/finance/merger-model |
| Path | optional-skills/finance/merger-model |
| Version | 1.0.0 |
| Author | Anthropic (adapted by Nous Research) |
| License | Apache-2.0 |
| Platforms | linux, macos, windows |
| Tags | finance, m-and-a, merger, accretion-dilution, excel, openpyxl, modeling, investment-banking |
| Related skills | excel-author, pptx-author, dcf-model, 3-statement-model |
Reference: full SKILL.mdℹ️ Info
The following is the complete skill definition that Hermes loads when this skill is triggered. This is what the agent sees as instructions when the skill is active.
Environment
ℹ️ Info
The following is the complete skill definition that Hermes loads when this skill is triggered. This is what the agent sees as instructions when the skill is active.
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-mcpskill), prefer it for point-in-time comps, precedent transactions, and filings. - Otherwise, fall back to:
web_search/web_extractagainst SEC EDGAR (https://www.sec.gov/cgi-bin/browse-edgar) for US filings- Company IR pages for press releases, earnings decks
browser_navigatefor 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