Building a Merger Model: A Step‑by‑Step Guide for Financial Analysis

This article provides a detailed, structured walkthrough of how to build a merger model—a key financial tool used to evaluate the impact of a merger or acquisition. It covers essential steps from gathering financial data and setting deal assumptions to constructing pro forma statements, calculating EPS accretion or dilution, and performing sensitivity analysis. Designed for finance professionals, analysts, and students, this guide explains the critical components of M&A modeling and offers practical insights into assessing synergies, financing effects, and overall deal viability. Whether you're preparing for a transaction or strengthening your financial modeling skills, this resource serves as a clear and comprehensive reference for mastering merger models.