EPS Accretion and Dilution

In the simulation, participants will:

• Build and refine pro forma accretion/dilution models from scratch.

• Analyze target company financials and strategic fit.

• Test different financing scenarios to optimize outcomes.

• Model and evaluate the financial impact of operational synergies.

• Negotiate key deal terms under time pressure and new information.

• Craft and deliver a clear, compelling investment rationale based on the EPS analysis.

• Defend their recommendations in a competitive team setting.

• Construct a robust and dynamic EPS accretion/dilution model.

• Confidently analyze and recommend optimal financing structures for a deal.

• Quantify and integrate the financial impact of synergies into deal analysis.

• Interpret pro forma financial outcomes and their implications for shareholder value.

• Articulate the strategic trade-offs between accretion, balance sheet strength, and dilution.

• Develop persuasive communication skills to present complex financial analysis.

• Exercise sound judgment and critical thinking in a simulated high-pressure transaction environment.

1. Receive the Deal Brief Teams are introduced to an acquisition opportunity, including financials for the acquirer and target.

** 2. Analyze and Model** Participants conduct initial analysis, build a base-case accretion/dilution model, and identify key value drivers.

3. Make Strategic Decisions Teams decide on an initial offer price, propose a financing mix, and model associated synergies.

4. Negotiate and Adapt In multiplayer mode, teams negotiate terms. New market data or a competing bid may be introduced, forcing a strategic pivot.

5. Finalize and Communicate Participants finalize their model, prepare a one-page investment summary or a short presentation outlining their recommendation.

6. Review and Reflect Instructors and the simulation platform provide feedback on financial accuracy, strategic logic, and the persuasiveness of the final deliverable.

• Who is this EPS simulation designed for? It's ideal for students and professionals pursuing careers in investment banking, corporate development, private equity, or any finance role involving M&A and capital allocation.

• Do I need advanced Excel or prior modeling experience? No, the simulation is designed for all levels. Instructional content, including tutorial videos and guided templates, helps participants at every step.

• How long does the EPS simulation run? The core simulation is designed for 2 to 4 hours, but it can be easily condensed into a shorter workshop or extended into a multi-session deep dive.

• Is the simulation individual or team-based? It supports both formats. The team-based version encourages collaboration, division of roles, and negotiation, closely mirroring real deal team dynamics.

• What specific transactions are covered? The simulation focuses primarily on mergers and acquisitions but inherently covers key elements of equity financing and debt issuance as part of the deal structuring process.

• Are the financial models based on real-world cases? Yes. Participants work with simulated company data that reflects the complexity and ambiguity of real public company financials and transaction scenarios.

• Can instructors customize the simulation? Absolutely. Key variables like industry sector, company size, market conditions, and specific learning hurdles can be tailored to your curriculum.

• How is participant performance measured? Performance is measured holistically on the analytical accuracy of the financial model, the strategic soundness of the recommendation, and the clarity of the final communication.

• The accuracy and functionality of their pro forma accretion/dilution model.

• The strategic rationale and defensibility of their chosen financing structure.

• The quality of their investment summary or final presentation.

• Their ability to adapt recommendations to new information during negotiations.