M&A & Merger Models
What are the main deal adjustments that move pro forma net income away from the simple sum of the two companies' net incomes?
Model answer
Key adjustments (all after-tax where applicable)
- incremental interest expense on new acquisition debt
- forgone interest income on cash used to fund the deal
- synergies - cost or revenue…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 2,300+ — or go Pro for unlimited reps.
Pro unlocks every model answer — $19.99/mo.
More from M&A & Merger Models
- What makes an acquisition accretive or dilutive to EPS?
- An all-cash deal: when is it accretive?
- What are synergies and what are the two types?
- What's the difference between a strategic buyer and a financial buyer?
- What does it mean for an acquisition to be accretive or dilutive?
- Walk me through how you calculate accretion/dilution at a high level.
Try the real thing
1 / 3LBO & Paper LBO
What is a leveraged buyout?
Superday coming up? Take the cheat sheet.
The technicals and stories to have cold before you walk in — free, one email, no mailing list.
Free tier: 20 cards + 10 daily reps + ALL drills — no credit card required.