Mistakes in M&A accretion/dilution

Totally normal. accretion/dilution models are prone to small mistakes that can throw off results. A few tips:

• Use a checklist structure: walk through synergies, deal financing (debt/equity mix, interest, fees), pro forma share count, and new net income step by step.
• Sense-check each input: e.g., does the synergy margin make sense? Are you double-counting cost savings?
• Build in sanity checks—like calculating EPS both pre- and post-deal separately.
• Practice with simple models first, then layer in complexity.

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.

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

Hey!

To improve accuracy in accretion/dilution models, start by building a clear, step-by-step framework that you follow every time: project pro forma EPS, adjust for deal synergies, incorporate financing costs, and confirm share count assumptions before calculating accretion or dilution. 

Practice stress-testing your model by intentionally varying assumptions, such as purchase price, financing mix, or synergies, to see how sensitive your results are. Consistently reviewing each component in the same order helps reduce mistakes, and taking a few extra seconds to cross-check formulas and reconcile totals can prevent small errors from compounding under time pressure.