ProFundraising · Simulator
M&A EPS Accretion / Dilution Simulator
Will this acquisition raise or lower EPS?
Assumptions
Standalone EPS
$2.00
Pro forma EPS
$2.10
Accretion / (dilution)
5%
| Line | Amount |
|---|---|
| Combined net income | $12,000,000 |
| Less financing cost | -$1,500,000 |
| Pro forma net income | $10,500,000 |
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Built by The Crimson Bench · Educational model, not financial advice
About the M&A EPS Accretion / Dilution Simulator
Model a debt-financed acquisition to see whether the added earnings beat the financing cost — making the deal accretive or dilutive.
It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.
How the M&A EPS Accretion / Dilution Simulator Works
The model takes 5 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.
The Inputs
| Assumption | Example value |
|---|---|
| Acquirer net income | $10,000,000 |
| Acquirer shares | 5,000,000 |
| Target net income | $2,000,000 |
| Purchase price | $25,000,000 |
| Financing rate | 6% |
Worked Example
Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.
Standalone EPS
$2.00
Pro forma EPS
$2.10
Accretion / (dilution)
5%
| Line | Amount |
|---|---|
| Combined net income | $12,000,000 |
| Less financing cost | -$1,500,000 |
| Pro forma net income | $10,500,000 |
The Operator's Read
Accretive — the target's earnings exceed the cost of financing the deal, so EPS rises. Accretion isn't the same as a good deal, but it's what Wall Street reacts to first.
Assumptions & Limitations
- •The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
- •Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
- •It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
- •This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.
Frequently Asked Questions
What does the M&A EPS Accretion / Dilution Simulator calculate?
Model a debt-financed acquisition to see whether the added earnings beat the financing cost — making the deal accretive or dilutive. It takes 5 assumptions — Acquirer net income, Acquirer shares, Target net income, Purchase price, Financing rate — and returns Standalone EPS, Pro forma EPS, Accretion / (dilution), along with a full projection table you can export.
How do I use the M&A EPS Accretion / Dilution Simulator?
Enter your own figures in the input fields above — Acquirer net income, Acquirer shares, Target net income, and the rest. The model recalculates instantly and shows the resulting Standalone EPS and full breakdown. No sign-up needed to run it.
Is the M&A EPS Accretion / Dilution Simulator free?
Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.
What's the difference between this and a free calculator?
A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.
Who built the M&A EPS Accretion / Dilution Simulator?
The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.
Is this financial advice?
No. The M&A EPS Accretion / Dilution Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.
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