Merger Consequences

Merger consequence analysis is the process of estimating the impact of the merger between organizations on the financials of the combined and the individual entities. It is also referred to as an affordability analysis as it is used to determine what an acquirer is willing to pay for a possible target.

Activities included under merger consequences cover, but are not limited to, the following:

Strategic Implications

Assessing the qualitative and quantitative impact of a merger on the parties involved.

Accretion/Dilution Analysis

Analyzing the impact of a merger on the bottom-line of a company.

Break-Even Synergies

Analyzing the value of synergies required for a merger to reach break-even.

Balance Sheet Impacts

Studying the impact of a merger on the company’s assets and liabilities.