Accretion dilution slide from Lazard's pitchbook to Tower Group.
This post is part two of a two part series. Click here for part 1.
MAJOR INCOME STATEMENT ADJUSTMENTS
When one company acquires 100% of another company, the net income generated by both companies, along with all line items, is consolidated (lumped together). Modeling the pro forma income statement impact of an acquisition requires that we take into account deal-related adjustments. Although these are not exhaustive, we outline the major deal-related adjustments below. For in-depth, step-by-step training on building and modeling complete accretion dilution models, please see our self study programs or participate in our upcoming 4-day financial and valuation modeling seminars.
