Accretion/Dilution Calculator Excel Template
Accretion/Dilution Calculator Excel Template
Interactive Excel Financial Model
Download, customize, and integrate into your own analysis
What's Included
- Interactive financial model with live Excel formulas
- All formulas visible and fully editable
- Professional formatting with color-coded inputs & outputs
- Formula reference sheet with variable definitions
- Step-by-step instructions sheet
- Compatible with Microsoft Excel 2016 and later
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Price range: $0.00 through $20.00
Analyze M&A deal impact on EPS. Calculate pro forma earnings, accretion/dilution, and optimal cash vs. stock financing mix.
Online Calculator vs Excel Template
| Feature | Online | Excel |
|---|---|---|
| Instant use — no download | ✓ | — |
| Works offline | — | ✓ |
| Customize formulas & layout | — | ✓ |
| Save & share with colleagues | — | ✓ |
| Integrate into your own models | — | ✓ |
| Print-ready formatting | — | ✓ |
About This Template
Model M&A deal economics instantly with this Accretion/Dilution Calculator Excel template. Finance professionals, investment banking analysts, and M&A practitioners use this tool to determine whether an acquisition will increase or decrease the acquirer's earnings per share.
What You Can Calculate
This template computes the full pro forma impact of an M&A transaction:
- Pro Forma EPS — Combined earnings per share after the deal closes
- Accretion/(Dilution) — Dollar and percentage change in EPS from the transaction
- Deal Structure — Cash vs. stock consideration split based on your financing mix
- Share Count Impact — New shares issued and pro forma shares outstanding
- Financing Cost — Interest expense on the debt-funded cash portion
Required Inputs
Enter 7 inputs to run your analysis:
- Acquiror EPS & Share Price — Current standalone financials (from latest 10-K or analyst estimates)
- Acquiror Shares Outstanding — Diluted share count in millions
- Deal Value — Total equity purchase price for the target
- % Cash Financing — Portion funded with cash/debt (remainder is stock)
- After-Tax Interest Rate — Cost of debt financing for the cash portion
- Target Earnings + Synergies — Target's net income plus expected after-tax synergies
Methodology
The template calculates pro forma net income by combining the acquirer's standalone earnings with target earnings and synergies, then subtracting the financing cost on any debt-funded cash consideration. Pro forma EPS equals this combined income divided by the new share count (original shares plus shares issued for the stock portion). The accretion or dilution is simply the difference between pro forma EPS and standalone EPS.
Assumptions & Limitations
- Single-period (Year 1) pro forma analysis only
- No purchase accounting adjustments (intangible amortization, asset write-ups)
- No transaction costs (advisory fees, financing costs)
- Synergies assumed fully realized in Year 1
- For educational purposes — not financial advice
Frequently Asked Questions
Yes. Save the workbook with different filenames for each scenario (e.g., 'Deal A - 50% Cash.xlsx', 'Deal B - All Stock.xlsx'). Each copy preserves all formulas, letting you compare accretion across different financing mixes, synergy levels, or purchase prices side by side.
Adjust the Deal Value input until the % Accretion/(Dilution) output reaches zero. That purchase price is the maximum you can pay while maintaining EPS neutrality under your current assumptions. You can also vary synergies or financing mix to see how each affects the breakeven point.
The share price is an explicit input so you can model different stock price scenarios without recalculating EPS or P/E each time. This lets you stress-test how share price movements affect the number of new shares issued and the resulting accretion/dilution.
A fully interactive financial model with live Excel formulas, an Instructions sheet with usage guide, and a Formula Reference sheet with variable definitions and model assumptions. All formulas are visible and editable.
Microsoft Excel 2016 or later. The template uses standard Excel formulas only — no macros, VBA, or add-ins required.
Yes. All cells are fully editable. You can modify any formula, add your own calculations, change formatting, or integrate the model into your existing spreadsheets.
The online calculator runs in your browser for quick calculations. This Excel template gives you a portable, offline financial model you can customize, save, share with colleagues, and integrate into your own analysis.
This template is provided for educational and personal use. You may use it in your own professional analysis and presentations. Redistribution or resale of the template itself is not permitted.
You can re-download the latest version from your account or by requesting a new download link. Free downloads are limited to 5 per email address per month.
