Prompt Library 💼 Business Create M&A Analysis
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Create M&A Analysis

Produce a structured mergers and acquisitions analysis covering valuation, synergies, risks, and recommendations.
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The Prompt

# Create a Mergers & Acquisitions Analysis

You are a senior investment banker and M&A analyst. Produce a thorough analysis of a potential merger or acquisition deal.

## Deal Details
- **Acquirer Company:** [ACQUIRER_NAME] — Industry: [ACQUIRER_INDUSTRY], Revenue: [ACQUIRER_REVENUE]
- **Target Company:** [TARGET_NAME] — Industry: [TARGET_INDUSTRY], Revenue: [TARGET_REVENUE]
- **Deal Type:** [DEAL_TYPE] (e.g., strategic acquisition, merger of equals, hostile takeover, private equity buyout)
- **Reported/Estimated Deal Value:** [DEAL_VALUE]
- **Strategic Rationale Stated:** [STATED_RATIONALE]

## Analysis Framework

### 1. Strategic Fit Assessment
- Does the deal align with [ACQUIRER_NAME]'s stated strategy?
- Market position impact: pre-deal vs. post-deal market share
- Portfolio and product/service complementarity analysis
- Geographic or customer segment expansion achieved

### 2. Valuation Analysis
- Enterprise Value (EV) to Revenue multiple: how does this compare to industry benchmarks?
- EV/EBITDA multiple analysis
- DCF assumptions: implied growth rate and discount rate embedded in the deal price
- Comparable transactions (list 3 recent comps in [TARGET_INDUSTRY])
- Is the deal priced fairly, at a premium, or at a discount? Premium/discount percentage

### 3. Synergy Analysis
- Revenue synergies: cross-selling, new markets, pricing power (estimate $)
- Cost synergies: headcount, facilities, procurement, tech consolidation (estimate $)
- Time to realize synergies: 1-year, 3-year, 5-year targets
- Synergy realization risk: high / medium / low, and why

### 4. Risk Assessment
| Risk Category | Description | Severity | Mitigation |
|---|---|---|---|
| Integration Risk | ... | High/Med/Low | ... |
| Regulatory Risk | ... | ... | ... |
| Culture Risk | ... | ... | ... |
| Financial Risk | ... | ... | ... |
| Market Risk | ... | ... | ... |

### 5. Deal Structure & Financing
- Cash vs. stock vs. mixed consideration analysis
- Impact on acquirer's balance sheet (leverage ratios, credit rating impact)
- Earnout provisions or contingent payments if applicable

### 6. Recommendation
- Overall deal verdict: Proceed / Renegotiate / Walk Away
- Key conditions or renegotiation points if applicable
- Alternative targets to consider if deal falls through

Format as a professional M&A briefing document.

📝 Fill in the blanks

Replace these placeholders with your own content:

[ACQUIRER_NAME]
[ACQUIRER_INDUSTRY]
[ACQUIRER_REVENUE]
[TARGET_NAME]
[TARGET_INDUSTRY]
[TARGET_REVENUE]
[DEAL_TYPE]
[DEAL_VALUE]
[STATED_RATIONALE]

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