M&A Merger Model
Demo #8 — Sava Industrial acquires Pacific Forge Components: purchase price, sources & uses, Year 1 pro forma P&L, EPS accretion/dilution, and synergy scenarios vs standalone Sava.
Training scope
Fictional bolt-on acquisition with static FY2023A stand-alone financials and simplified purchase accounting. No fairness opinion, live deal terms, or full 3-statement pro forma balance sheet. Offer premium references Demo #7; stand-alone Sava ties to Demo #1/#2 — educational use only.
Purchase price — Pacific Forge
Premium to unaffected price, equity value, and EV bridge (Demo #7 reference multiple ~8.0× EBITDA).
Offer price ($/sh)
17.00
Enterprise value ($M)
287.9
EV / EBITDA
8.0×
Goodwill ($M)
129.9
Sources & uses
40% cash / 60% stock mix, new term loan, and pro forma share count (Excel Sources & Uses sheet).
Synergies & leverage
Toggle Base / Upside / Downside run-rate synergies (Assumptions scenario 1–3).
Accretion / dilution
Standalone Sava EPS proxy (FY2025E growth on FY2023A) vs pro forma with and without Year 1 synergies.
| Case | EPS ($/sh) | Accretion / (dilution) |
|---|---|---|
| Standalone acquirer | 1.35 | — |
| Pro forma — no synergies | 1.39 | +2.7% |
| Pro forma — with synergies | 1.46 | +7.8% |
| Synergy scenario | Y1 synergy EBITDA | EPS ($/sh) | Accretion / (dilution) |
|---|---|---|---|
| Base | 11.6 | 1.46 | +7.8% |
| Upside | 17.7 | 1.55 | +15.0% |
| Downside | 5.2 | 1.36 | +0.3% |
Pro forma income statement (Year 1)
Combined revenue growth, synergy EBITDA, purchase accounting amortization, and financing interest.
Total revenue ($M)
701.8
Pro forma EBITDA ($M)
154.4
Net income ($M)
68.4
Pro forma EPS ($/sh)
1.46
Triangulate stand-alone valuation (#6/#7/#2) with deal mechanics here before advanced LBO (#9).