What usually drives accretion?

Low cost of debt, strong synergies, and buying at a lower multiple.

Where do purchase accounting adjustments hit?

They change D&A, deferred taxes, and sometimes revenue recognition.

Walk Me Through a Merger Model: Accretion Drivers (2025)

A merger model walkthrough with accretion-dilution drivers, synergies, purchase accounting, and a decision-ready conclusion you can deliver fast in interviews.

Merger model in one page

Focus on the mechanics that change EPS: deal consideration, financing cost, synergies, and purchase accounting.

Core steps

Set deal terms (price, mix, timing).
Forecast standalone buyer and target.
Add synergies and one-time costs.
Run purchase accounting adjustments.
Model financing impacts (interest, share count).
Calculate pro forma EPS and accretion.

Accretion drivers

Driver	Effect	Why it matters
Synergies	Accretive	Boosts EBITDA and EPS
Financing cost	Dilutive if high	Interest expense can erode EPS
Purchase accounting	Often dilutive	Intangible amortization reduces earnings

Decision-ready conclusion

"If the synergy capture and financing cost keep EPS accretive within two years, the deal makes sense. Otherwise, the price or structure needs adjustment."

Review PPA and Working Capital Peg for the accounting impacts.