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Merger Model

Build M&A accretion/dilution workbooks in Excel

financem-and-amergeraccretion-dilutionexcelopenpyxlmodelinginvestment-banking
Last registry verification2026-08-18v1.0.0Anthropic (adapted by Nous Research)
Open original source ↗اقرأ بالعربية
Plain meaning

What does it add to Hermes?

Build M&A accretion/dilution workbooks in Excel

Merger Model is a skill related to payments and business operations. It handles financial or commercial data and actions; any write operation needs stronger approval and limits than ordinary use.

This plain-language explanation is based on the publisher description. The original text remains visible for verification.

Use it when

Use it when your goal in payments and business operations is clear and you can limit it to the data and actions it actually needs.

Skip it when

Do not add it merely to experiment when Hermes already has a simpler path, or when you cannot review its source and permissions.

Who is it for?

Best for users who want a repeatable way of working inside Hermes.

Safe first test

Use a sandbox or test data and do not grant real payment or refund permissions in the first test.

Original publisher description

Build M&A accretion/dilution workbooks in Excel

✓
Data source

This entry was indexed from Hermes Optional Skills. Our explanation interprets the type and domain without inventing a capability not present upstream.

!
Security review

The source is official or editorially reviewed, but you still need to review permissions and version compatibility.

Safe setup path

Inspect, install, then test.

  1. 01
    Open the source

    Match the publisher, license, and description to your need. Check the real update history.

  2. 02
    Review permissions and secrets

    Never paste a secret value into this site. Use environment-variable names and grant the smallest scope.

  3. 03
    Copy setup only after review

    The controls below copy text. They do not execute commands on your device.

  4. 04
    Test with a non-sensitive task

    Inspect the visible tools, then exclude write or delete tools you do not need.

Install command

Review the command, then copy it.

hermes skills install merger-model

Hermes Belarabi does not execute this command. Installation happens on your device and remains subject to Hermes scanning and your review.

The full skill definition

Exactly what Hermes loads when this skill runs.

Reproduced from the official documentation. Read it before enabling the skill: this text becomes the agent's instructions.

Build M&A accretion/dilution workbooks in Excel.

Skill metadata

A lookup table. Do not read it all; find the row that applies to you.

SourceOptional — install with hermes skills install official/finance/merger-model
Pathoptional-skills/finance/merger-model
Version1.0.0
AuthorAnthropic (adapted by Nous Research)
LicenseApache-2.0
Platformslinux, macos, windows
Tagsfinance, m-and-a, merger, accretion-dilution, excel, openpyxl, modeling, investment-banking
Related skillsexcel-author, pptx-author, dcf-model, 3-statement-model

Reference: full SKILL.md

Explains the idea itself. Read it slowly; the later sections build on it.

Environment

Explains the idea itself. Read it slowly; the later sections build on it.

This skill assumes headless openpyxl — you are producing an .xlsx file on disk. Follow the excel-author skill's conventions for cell coloring, formulas, named ranges, and sensitivity tables. Recalculate before delivery: python /path/to/excel-author/scripts/recalc.py ./out/model.xlsx.

Build accretion/dilution analysis for M&A transactions. Models pro forma EPS impact, synergy sensitivities, and purchase price allocation. Use when evaluating a potential acquisition, preparing merger consequences analysis for a pitch, or advising on deal terms.

Workflow

A lookup table. Do not read it all; find the row that applies to you.

Step 1: Gather Inputs

Acquirer:

  • Company name, current share price, shares outstanding
  • LTM and NTM EPS (GAAP and adjusted)
  • P/E multiple
  • Pre-tax cost of debt, tax rate
  • Cash on balance sheet, existing debt

Target:

  • Company name, current share price, shares outstanding (if public)
  • LTM and NTM EPS or net income
  • Enterprise value or equity value

Deal Terms:

  • Offer price per share (or premium to current)
  • Consideration mix: % cash vs. % stock
  • New debt raised to fund cash portion
  • Expected synergies (revenue and cost) and phase-in timeline
  • Transaction fees and financing costs
  • Expected close date

Step 2: Purchase Price Analysis

ItemValue
Offer price per share
Premium to current
Equity value
Plus: net debt assumed
Enterprise value
EV / EBITDA implied
P/E implied

Step 3: Sources & Uses

Sources$Uses$
New debtEquity purchase price
Cash on handRefinance target debt
New equity issuedTransaction fees
Financing fees
TotalTotal

Step 4: Pro Forma EPS (Accretion / Dilution)

Calculate year-by-year (Year 1-3):

StandalonePro FormaAccretion/(Dilution)
Acquirer net income
Target net income
Synergies (after tax)
Foregone interest on cash (after tax)
New debt interest (after tax)
Intangible amortization (after tax)
Pro forma net income
Pro forma shares
Pro forma EPS
Accretion / (Dilution) %

Step 5: Sensitivity Analysis

Accretion/Dilution vs. Synergies and Offer Premium:

$0M syn$25M syn$50M syn$75M syn$100M syn
15% premium
20% premium
25% premium
30% premium

Accretion/Dilution vs. Cash/Stock Mix:

100% cash75/2550/5025/75100% stock
Year 1
Year 2

Step 6: Breakeven Synergies

Calculate the minimum synergies needed for the deal to be EPS-neutral in Year 1.

Step 7: Output

  • Excel workbook with:
  • Assumptions tab
  • Sources & uses
  • Pro forma income statement
  • Accretion/dilution summary
  • Sensitivity tables
  • Breakeven analysis
  • One-page merger consequences summary for pitch book

Important Notes

Explains the idea itself. Read it slowly; the later sections build on it.

  • Always show both GAAP and adjusted (cash) EPS where relevant
  • Stock deals: use acquirer's current price for exchange ratio, note dilution from new shares
  • Include purchase price allocation — goodwill and intangible amortization matter for GAAP EPS
  • Synergy phase-in is critical — Year 1 is often only 25-50% of run-rate synergies
  • Don't forget foregone interest income on cash used and new interest expense on debt raised
  • Tax rate on synergies and interest adjustments should match the acquirer's marginal rate

Data sources — MCP first, web fallback

Explains the idea itself. Read it slowly; the later sections build on it.

Many passages below say "use the S&P Kensho MCP / Daloopa MCP / FactSet MCP". Those are commercial financial-data MCPs from the original Cowork plugin context. In Hermes:

  • If you have any structured financial-data MCP configured (Hermes supports MCP — see native-mcp skill), prefer it for point-in-time comps, precedent transactions, and filings.
  • Otherwise, fall back to:
  • web_search / web_extract against SEC EDGAR (https://www.sec.gov/cgi-bin/browse-edgar) for US filings
  • Company IR pages for press releases, earnings decks
  • browser_navigate for interactive data portals
  • User-provided data (explicitly ask when the context doesn't have it)
  • Never fabricate. If a multiple, precedent, or filing number can't be sourced, flag the cell as [UNSOURCED] and surface it to the user.

Attribution

Explains the idea itself. Read it slowly; the later sections build on it.

This skill is adapted from Anthropic's Claude for Financial Services plugin suite (Apache-2.0). The Office-JS / Cowork live-Excel paths have been removed; this version targets headless openpyxl via the excel-author skill's conventions. Original: https://github.com/anthropics/financial-services