Synergies and Post-Merger EPS Accretion/Dilution Analysis

Act as a senior M&A modeling and corporate-finance analyst.

Develop a post-merger synergy and EPS accretion/dilution analysis using the information provided below.

Acquirer:
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Target:
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Transaction terms:
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Synergy assumptions:
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Purchase accounting and integration assumptions:
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Financing and share assumptions:
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Analysis requirements:

1. Confirm transaction structure, valuation date, currency, timing, and fully diluted shares.
2. Build standalone acquirer and target earnings baselines.
3. Model transaction consideration, including:
   - cash;
   - stock;
   - debt;
   - rollover equity;
   - earnouts;
   - assumed debt;
   - fees; and
   - refinancing.
4. Model purchase accounting, including:
   - asset write-ups;
   - intangible assets;
   - amortization;
   - deferred tax;
   - inventory step-up;
   - goodwill;
   - transaction costs;
   - restructuring; and
   - one-time integration costs.
5. Separate synergies into:
   - cost;
   - revenue;
   - capital expenditure;
   - working capital;
   - tax;
   - financing; and
   - dis-synergies.
6. For each synergy, document:
   - gross value;
   - timing;
   - probability;
   - implementation cost;
   - owner;
   - dependency;
   - risk;
   - run-rate; and
   - present value.
7. Build year-one through year-five merger projections.
8. Calculate:
   - pro forma net income;
   - pro forma diluted shares;
   - pro forma EPS;
   - EPS accretion or dilution;
   - break-even synergies;
   - leverage;
   - interest coverage;
   - goodwill;
   - returns on invested capital; and
   - payback or value-creation indicators.
9. Develop downside, base, and upside synergy scenarios.
10. Conduct sensitivity analysis for:
    - purchase price;
    - financing mix;
    - interest rate;
    - synergy timing;
    - synergy realization;
    - integration cost;
    - revenue dis-synergy; and
    - share price.
11. Distinguish accounting EPS accretion from economic value creation.
12. Do not invent transaction terms, tax treatment, accounting adjustments, synergies, share prices, or financing rates.
13. Require accounting, tax, legal, treasury, and deal-team validation.

Present the result as:
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Include:
- transaction overview;
- consideration and financing;
- purchase-accounting bridge;
- synergy schedule;
- integration-cost schedule;
- pro forma income statement;
- pro forma share count;
- EPS accretion/dilution;
- leverage and coverage;
- synergy break-even;
- scenario and sensitivity analysis;
- value-creation assessment;
- key risks; and
- validation requirements.