skills/merger-model-builder/references/model-math.md

# Model Math Map

Equity value = offer x target shares unless supplied. EV = equity value + debt + debt-like items - cash. Sources must equal uses.

Shares issued use exchange ratio or stock value / buyer price. PF shares drive ownership. PPA step-ups less DTL drive identifiable net assets and goodwill. PF NI combines buyer, target, synergies, financing, PPA, integration, and fees; show GAAP/adjusted EPS and synergy breakeven.