How Would I Calculate “break-even Synergies” In An M&a Deal And W

1.	How Would I Calculate “break-even Synergies” In An M&a Deal And What Does The Number Mean?
Answer» To do this, you would SET the EPS accretion / dilution to $0.00 and then back-solve in Excel to get the required synergies to make the DEAL neutral to EPS. It’s important because you want an idea of whether or not a deal “works” MATHEMATICALLY, and a high number for the break-even synergies tells you that you’re going to need a lot of cost SAVINGS or revenue synergies to make it work. To do this, you would set the EPS accretion / dilution to $0.00 and then back-solve in Excel to get the required synergies to make the deal neutral to EPS. It’s important because you want an idea of whether or not a deal “works” mathematically, and a high number for the break-even synergies tells you that you’re going to need a lot of cost savings or revenue synergies to make it work.

How Would I Calculate “break-even Synergies” In An M&a Deal And What Does The Number Mean?

Answer»

To do this, you would SET the EPS accretion / dilution to $0.00 and then back-solve in Excel to get the required synergies to make the DEAL neutral to EPS. It’s important because you want an idea of whether or not a deal “works” MATHEMATICALLY, and a high number for the break-even synergies tells you that you’re going to need a lot of cost SAVINGS or revenue synergies to make it work.

To do this, you would set the EPS accretion / dilution to $0.00 and then back-solve in Excel to get the required synergies to make the deal neutral to EPS. It’s important because you want an idea of whether or not a deal “works” mathematically, and a high number for the break-even synergies tells you that you’re going to need a lot of cost savings or revenue synergies to make it work.

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How Would I Calculate “break-even Synergies” In An M&amp;a Deal And What Does The Number Mean?

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How Would I Calculate “break-even Synergies” In An M&a Deal And What Does The Number Mean?