M&A Accretion/Dilution Bridge Visualizer

Every acquirer's board asks the same question first: does this deal grow earnings per share, or shrink it? The bridge from standalone to pro forma is where that answer actually lives.

Reading This Tool

How To Use This Bridge

Enter the acquirer's and target's financials, the deal structure, and expected synergies.

The waterfall shows exactly how combined net income builds from the acquirer's standalone earnings, target earnings added, synergies layered in, and the cost of any cash used to fund the deal, before the new shares issued determine the final EPS outcome.

Your Inputs

Acquirer Net Income $50,000,000

Acquirer Shares Outstanding 20,000,000

Acquirer P/E Multiple 18.0x

Target Net Income $15,000,000

Total Deal Value $100,000,000

Percent Funded With Cash 50%

Annual Pre-Tax Synergies $5,000,000

Foregone interest on cash used assumes a 3% after-tax opportunity cost. Stock consideration is issued at the acquirer's current P/E-implied share price. A 26% combined federal/provincial tax rate is applied to synergies and foregone interest.

EPS Impact

Pro Forma EPS Accretion / (Dilution)

Standalone EPS

Pro Forma EPS

Net Income Bridge: Standalone To Combined

This is a simplified first-year accretion/dilution model. It does not include transaction costs, purchase price allocation and intangible amortization, or financing fees, all of which typically reduce accretion in a real deal.

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