Value the target with an enterprise-value multiple, run the deal through an accretion/dilution model, then check the combined ratios.
Get the target's enterprise value and trading multiples.
enterprise_value({"share_price": 400000, "shares_outstanding": 100})Model pro-forma EPS accretion or dilution from the acquisition.
accretion_dilution({"acquirer_net_income": 85000, "acquirer_shares": 100, "purchase_price": 400000})Check the combined entity's financial ratios post-close.
financial_ratios({"current_assets": 100, "current_liabilities": 100, "inventory": 100})