GCP INTELLIGENCE
Model the combination.
Separate recurring economics, financing, consideration and integration cost.
Acquisition Accretion
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Method & interpretation
Pro-forma EBITDA = buyer + target + recurring synergies. Target is acquired cash-free/debt-free; price equals target enterprise consideration. Cash funds the balance after new debt and issued equity. Integration is a one-time cash cost.
Stock consideration is issued at the buyer's assumed standalone equity value; no EPS or accounting-accretion claim.
Target historical cash and debt are excluded by the stated cash-free/debt-free convention. Transaction fees, tax, PPA and amortization are excluded.
Negative cash funding capacity is invalid. Debt / EBITDA is unavailable for non-positive EBITDA. Synergy break-even here covers new interest, not the entire investment hurdle.
THE CONNECTED SYSTEM