I’ve practiced a lot of accretion/dilution models, but I still find myself misapplying synergies, forgetting to adjust for financing costs, or using the wrong share count assumptions. I know conceptually how it works, but putting it together quickly and error-free is a struggle. Any tips on how to better structure or learn to stress-test my own math in these situations?
One thing that helps is building a clean, modular structure in your model, so synergies, financing, and share count assumptions are clearly separated. That makes it easier to spot errors. I’d also recommend checking sensitivities or toggling key assumptions. That way, you can stress-test your logic and catch inconsistencies early.
Lastly, don’t underestimate repetition. The more deals you model, the more intuitive it becomes.
Rita
Totally normal. accretion/dilution models are prone to small mistakes that can throw off results. A few tips:
As always, speed will come with reps, but clarity comes from slowing down and building clean, auditable logic. Take your time and practice over and over.
