How Do You Analyze a Merger

Analysis of Accretion/Dilution and balance sheet impact based on pro forma acquisition results.Analysis of Synergies.Type of Consideration offered and how this will impact results (i.e., Cash vs. Stock)Goodwill creation and other Balance Sheet adjustments.Transaction fees.

How do you analyze a merger and acquisition?

There are three major steps to conducting a merger or acquisition analysis: Step 1: Obtaining a purchase price. Step 2: Estimating sources and uses of funds. Step 3: Creating a pro-forma analysis.

How do you know if a merger is successful?

If clients are pleased with the quality of the merged firm’s services, then the merger can be considered successful. One way to measure client satisfaction is through formal client satisfaction surveys and interviews, which can hopefully be compared to results in the predecessor firms.