portfolios.tools

Merger Accretion Dilution Calculator

Free Merger Accretion Dilution Calculator measures pro forma EPS versus standalone acquirer. Model cash and stock deals with synergies, financing costs, and share issuance to see accretion or dilution percentages.

Merger Accretion Dilution Calculator
Results
{
  "proFormaEps": 3.7917,
  "accretionDilutionPct": -5.21,
  "isAccretive": false,
  "valid": true
}

How It Works

Enter the inputs described in each field label for Merger Accretion Dilution Calculator.

Merger accretion dilution measures whether pro forma EPS rises or falls versus the acquirer standalone. Use Trading Comps Valuation and Precedent Transaction Comps on portfolios.tools for pricing context.

Review pro forma EPS and accretion percentage. Adjust synergies and financing mix to test sensitivity. Model cash versus stock consideration to see different dilution outcomes.

Bookmark the page for quick reruns without installing software.

Step by step

  1. Open Merger Accretion Dilution Calculator and enter your current inputs.
  2. Review calculated outputs and summary tables.
  3. Adjust assumptions and compare scenarios side by side.

Worked example

Adjust one input at a time to see sensitivity.

Common mistakes

Confirm tickers, percentages, and dates before acting.

Running a single baseline scenario ignores tail risks.

The Formula

Pro Forma Net Income = Acquirer NI + Target NI + Synergies − After Tax Financing Cost

Pro Forma Shares = Acquirer Shares + New Shares Issued

Pro Forma EPS = Pro Forma NI ÷ Pro Forma Shares

Accretion % = (Pro Forma EPS ÷ Acquirer EPS − 1) × 100

Stock deals use exchange ratio for new shares. Cash deals add after tax interest on new debt. Synergies should be phased realistically.

Limitations and assumptions

Stock deals use exchange ratio for new shares. Cash deals add after tax interest on new debt. Synergies should be phased realistically. Merger Accretion Dilution Calculator does not replace personalized advice.

Key terms

What does Merger Accretion Dilution Calculator measure
Merger accretion dilution measures whether pro forma EPS rises or falls versus the acquirer standalone.
How is the formula applied
The formula block on this page shows every intermediate step so you can audit the math against textbook definitions.
Model assumption
Interpret results in context rather than as automatic buy, sell, or accept signals.

Compare alternatives

Use Trading Comps Valuation and Precedent Transaction Comps on portfolios.

FAQ

What does Merger Accretion Dilution Calculator measure?

Merger accretion dilution measures whether pro forma EPS rises or falls versus the acquirer standalone. This calculator runs entirely in your browser on portfolios.tools.

How is the formula applied in Merger Accretion Dilution Calculator?

Stock deals use exchange ratio for new shares. Cash deals add after tax interest on new debt. Synergies should be phased realistically.

How should I interpret Merger Accretion Dilution Calculator results?

Merger accretion dilution measures whether pro forma EPS rises or falls versus the acquirer standalone.

What are common input mistakes with Merger Accretion Dilution Calculator?

Stress test with conservative and optimistic inputs before acting. Document assumptions when sharing outputs with colleagues or lenders.

What are the limitations of Merger Accretion Dilution Calculator?

Stock deals use exchange ratio for new shares. Cash deals add after tax interest on new debt. Synergies should be phased realistically.

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