skills/merger-model-builder/references/deep/plan-schema

# Plan Schema

This file defines the `plan.json` contract for `merger-model-builder`.

Path literals in this file are skill-root-relative unless they use an explicit relative prefix.

## Table Of Contents
1. Top-level structure
2. Evidence labels
3. `meta`
4. `periods`
5. `acquirer`
6. `target`
7. `transaction`
8. `consideration`
9. `financing`
10. `purchase_accounting`
11. `synergies`
12. `scenarios`
13. `sensitivities`
14. Screen-grade vs decision-grade

## Top-level structure

Required top-level keys:

- `meta`
- `source_basis`
- `periods`
- `acquirer`
- `target`
- `transaction`
- `consideration`
- `financing`
- `purchase_accounting`
- `synergies`
- `scenarios`
- `sensitivities`

The bundled template at the skill-root-relative path `assets/plan_template.json` is both an example and a runnable smoke-test input.

## Evidence labels

Allowed source labels:

- `signed_agreement` — signed merger agreement, purchase agreement, tender document, or binding deal documentation.
- `filed` — public filing such as 10-K, 10-Q, 20-F, S-4, proxy, 8-K, annual report, or equivalent.
- `audited` — audited financial statements or audited schedules.
- `reviewed` — reviewed interim financial statements.
- `vdr` — virtual data room materials.
- `management_case` — management forecast, synergy workplan, or internal case.
- `consensus` — sell-side consensus or market estimate source.
- `financing_commitment` — debt commitment, bridge letter, bank term sheet, or committed financing package.
- `accounting_memo` — PPA, accounting treatment, or controller memo.
- `tax_memo` — tax structuring, NOL, Section 338/382, deductibility, or local tax memo.
- `user_provided` — explicit user-provided assumption or file.
- `estimate` — informed estimate based on available context.
- `assumption` — explicit modeling assumption that needs confirmation.
- `placeholder` — placeholder used only to keep a screen-grade model runnable.
- `unsupported` — unsupported input that should normally make the model not decision-ready unless immaterial.

These are native merger schema labels. Preserve them in `source_basis[].label`, generated workbooks, and run logs. For downstream handoffs, include both the native label and the canonical category from `../../../references/evidence-label-taxonomy.md`.

Each `source_basis` entry requires:

```json
{
  "id": "src_offer_terms",
  "label": "signed_agreement",
  "description": "source description",
  "date": "2026-02-10",
  "priority": 1,
  "categories": ["offer_terms"]
}
```

Required source categories:

- `financials`
- `share_count`
- `offer_terms`
- `financing`
- `synergies`
- `purchase_accounting`

For `adjusted_eps_screen`, unavailable purchase-accounting or financing inputs may be recorded as explicit readiness gaps rather than fabricated inputs, provided the workbook does not display GAAP accretion/dilution or financing effects dependent on those missing fields. For `gaap_accretion_model`, financing and purchase-accounting support remain required for displayed GAAP conclusions.

Optional source categories:

- `tax`
- `market_data`
- `valuation`
- `legal`
- `regulatory`
- `industry`

## `meta`

Required fields:

- `deal_name`
- `acquirer`
- `target`
- `currency`
- `units`
- `valuation_date` or `announcement_date`
- `accounting_basis`

Recommended fields:

- `industry`
- `model_purpose`
- `review_standard`
- `fiscal_year_end`
- `close_date`
- `model_mode`: `adjusted_eps_screen` or `gaap_accretion_model`

Allowed `accounting_basis`: `us_gaap`, `ifrs`, `local_gaap`, `unknown`, or a clearly labeled adjusted-EPS-only basis when `model_mode` is `adjusted_eps_screen`.

## `periods`

A non-empty list of period labels such as:

```json
["FY2026E", "FY2027E", "FY2028E"]
```

Every period used in `periods` must be present in acquirer net income, target net income, target EBITDA, synergy maps, and integration cost maps.

## `acquirer`

Required fields:

- `share_price` greater than 0
- `diluted_shares` greater than 0
- `cash` greater than or equal to 0
- `debt` greater than or equal to 0
- `tax_rate` between 0 and 1
- `net_income` map for all periods

Recommended fields:

- `eps` map for all periods
- `standalone_ebitda` map for all periods

## `target`

Required fields:

- `diluted_shares` greater than 0
- either `offer_price` or `transaction.equity_purchase_price`
- `cash` greater than or equal to 0
- `debt` greater than or equal to 0
- `book_equity`
- `net_income` map for all periods
- `standalone_ebitda` map for all periods

Recommended fields:

- `undisturbed_price`
- `tax_rate`

## `transaction`

Required fields:

- `offer_price` unless `equity_purchase_price` is provided
- `refinance_target_debt`
- `required_min_cash`
- `fees`
- `tax_rate`

Required fee fields:

- `transaction_fees`
- `financing_fees`
- `equity_issuance_fees`

Optional fee fields:

- `debt_tender_premiums`
- `bridge_fees`
- `consent_fees`
- `break_fees`
- `transfer_taxes`

## `consideration`

Required fields:

- `cash_percent`
- `stock_percent`
- `other_percent`
- `fixed_value_stock`

The consideration mix must sum to 100% unless `transaction.allow_unbalanced_consideration_mix` is true. If stock consideration is used, the plan must include either an acquirer share price or an exchange ratio.

Optional fields:

- `exchange_ratio`
- `other_consideration_value`
- `collar_low`
- `collar_high`
- `rollover_equity`
- `contingent_value_rights`

## `financing`

Required fields:

- `new_debt`
- `cash_used`
- `debt_interest_rate`
- `lost_cash_interest_rate`
- `fee_amortization_years`
- `use_target_cash`

Do not silently default financing terms that change accretion. If terms are not known, enter explicit placeholder assumptions and label financing source basis as `placeholder` or `assumption`.

## `purchase_accounting`

Required fields:

- `target_book_equity`
- `existing_goodwill`
- `intangible_assets`
- `ppe_step_up`
- `ppe_step_up_life`
- `inventory_step_up`
- `deferred_tax_rate`
- `nci_fair_value`
- `previously_held_interest_fair_value`
- `contingent_consideration_fair_value`

Each intangible asset requires:

- `name`
- `fair_value`
- `amortization_years`

If `deferred_tax_liability` is null, the pipeline calculates DTL from step-ups and `deferred_tax_rate`.

## `synergies`

Required period maps:

- `cost_synergies`
- `revenue_synergies`
- `dis_synergies`
- `integration_costs`

Required scalar fields:

- `revenue_synergy_margin`
- `tax_rate`
- `realization_basis`
- `integration_costs_excluded_from_adjusted_eps`

Allowed `realization_basis`: `immediate`, `phased`, `run_rate`, `probability_weighted`, `unknown`.

## `scenarios`

Required scenario names:

- `base`
- `downside`
- `upside`

Each scenario should include:

- `description`
- `acquirer_net_income_factor`
- `target_net_income_factor`
- `target_ebitda_factor`
- `synergy_factor`
- `dis_synergy_factor`
- `integration_cost_factor`
- `debt_rate_delta`
- `tax_rate_delta`
- `purchase_price_factor`
- `share_price_factor`
- `cash_percent_override`

Factors must be non-negative. Interest-rate deltas cannot drive the debt interest rate below zero.

## `sensitivities`

Required arrays:

- `synergy_factors`
- `debt_rate_deltas`
- `cash_percentages`
- `premium_factors`
- `tax_rates`
- `share_price_factors`

## Screen-grade vs decision-grade

A model is usually only `screen-grade` when any material item uses `estimate`, `assumption`, `placeholder`, or `unsupported` labels.

An `adjusted_eps_screen` is also `screen-grade` when it intentionally omits unsupported GAAP/PPA, post-close denominator actualization or refinancing effects while presenting only sourced and explicitly modeled adjusted-EPS outputs. Missing GAAP inputs are readiness gates, not placeholder inputs unless used in a displayed calculation.

A model can be `senior-review-ready` when the required categories are sourced, checks pass, financing/purchase accounting are grounded, and warnings are explainable.

A model should not be called `decision-grade` unless primary deal terms, financing, financials, tax, purchase accounting, share count, and synergies are source-backed and reviewed.