You can sensitize key model assumptions like price paid, premium paid, and the amount of cash, debt, or equity used in the acquisition, etc. You can also sensitize synergies as there is often a large variance in what that can be. Finally, you can sensitize key operating metrics for the target company like revenue growth, EBITDA margin, and capex.
What would you sensitize in a merger model?
Published On - March 7, 2023
