Top 7 Mergers & Acquisitions Case Study Projects

Reading about mergers and acquisitions is easy. Analysing whether one company should actually acquire another is where real learning begins.

An M&A case study project puts you in the position of an investment banking analyst, corporate development professional or private equity associate. You must value a target, examine its financial health, identify potential risks, structure the transaction and decide whether the deal creates value.

That is exactly why a strong M&A project can be more valuable in an interview than a list of finance certifications. It gives employers something concrete to assess: how you think, how accurately you model and whether you understand the commercial logic behind a transaction.

The timing is also favourable. PwC expects global M&A value to approach $4 trillion in 2026, although much of the growth is being driven by very large transactions. AI, digital infrastructure, financial services, healthcare and industrial consolidation are among the important deal themes.

What is an M&A Case Study Project?

An M&A case study project is a practical analysis of a proposed or completed merger, acquisition or business combination.

You select two companies and examine whether the buyer should acquire the target. The project normally covers strategic reasoning, company valuation, transaction structure, financing, accounting adjustments, synergies and the effect of the deal on the buyer’s earnings.

A complete project should answer five important questions:

1. Why does the buyer want the target?
2. How much is the target worth?
3. What price should the buyer offer?
4. How will the acquisition be financed?
5. Will the transaction create or destroy shareholder value?

The final output is usually an Excel financial model supported by a PowerPoint presentation or investment banking-style deal memorandum.

Why M&A Projects Matter for Finance Careers

M&A professionals do much more than calculate valuation multiples. They analyse industries, study businesses, build financial models, coordinate due diligence and communicate recommendations to senior decision-makers.

A well-built project demonstrates several abilities at once:

• Financial statement analysis
• Company valuation
• Advanced Excel modelling
• Commercial and industry research
• Accounting knowledge
• Strategic thinking
• Risk assessment
• Presentation and communication
• Attention to detail

It also gives you meaningful material for interview discussions. Instead of merely claiming that you know discounted cash flow valuation, you can explain the assumptions you used, how you calculated synergies and why your model concluded that a transaction would be accretive or dilutive.

Best Mergers & Acquisitions Case Study Projects

1. Public Company Acquisition Analysis

This is one of the best beginner-level M&A projects because the required financial information is publicly available.

Select a listed company as the buyer and another listed company as the target. Analyse their annual reports, investor presentations, market position and historical financial performance.

Your project should include:

• Profiles of the buyer and target
• Industry overview
• Strategic reasons for the acquisition
• Historical financial analysis
• Standalone valuation of the target
• Recommended offer price
• Potential synergies
• Transaction financing
• Accretion or dilution analysis
• Key deal risks
• Final recommendation

For example, you could study whether a large Indian consumer company should acquire a smaller packaged-food brand to enter a new product category.

2. Accretion and Dilution Merger Model

An accretion and dilution model measures how an acquisition may affect the buyer’s earnings per share.

A transaction is accretive when the buyer’s projected earnings per share increase after the acquisition. It is dilutive when projected earnings per share decrease.

The model should calculate:

EPS Accretion or Dilution= (Pro Forma EPS−Buyer Standalone EPS)/ Buyer Standalone EPS​

Your analysis should incorporate:

• Buyer and target net income
• New debt and interest expense
• New shares issued
• Lost interest income on cash
• Cost and revenue synergies
• Tax effects
• Purchase accounting adjustments
• Pro forma share count
• Pro forma net income and EPS

This project is particularly useful for investment banking and corporate development interviews.

3. Comparable Transactions Analysis

In this project, you value a target using prices paid in previous acquisitions involving similar companies.

Build a database containing:

• Announcement date
• Buyer and target names
• Transaction value
• Enterprise value
• Target revenue
• Target EBITDA
• EV/Revenue multiple
• EV/EBITDA multiple
• Offer premium
• Transaction status

After identifying suitable precedents, calculate minimum, maximum, median and average valuation multiples. Apply the selected range to the target company’s financial metrics to estimate its implied valuation.

The difficult part is not calculating the multiples. It is deciding which transactions are genuinely comparable based on industry, geography, size, timing, profitability and business model.

4. Leveraged Buyout of a Target Company

A leveraged buyout, or LBO, involves acquiring a company with a significant amount of debt. The target’s future cash flows are then used to repay that debt.

Your LBO case study should include:

• Entry valuation
• Sources and uses of funds
• Debt tranches
• Interest calculations
• Operating projections
• Free cash-flow generation
• Debt repayment schedule
• Exit valuation
• Internal rate of return
• Money-on-money multiple

This is more advanced than a basic merger model. It is especially relevant for private equity, transaction advisory and investment banking candidates.

5. Cross-Border Acquisition Case Study

A cross-border acquisition introduces additional complications such as currency movements, foreign regulations, taxation and cultural integration.

The project can examine:

• Strategic access to a new geography
• Foreign exchange exposure
• Country and political risk
• Local competition
• Regulatory approvals
• Transfer pricing and taxation
• Cross-border financing
• Cultural and operating integration
• Currency-adjusted valuation
• Exit and repatriation risks

This type of project demonstrates that you can think beyond spreadsheet calculations and consider the full commercial environment surrounding a transaction.

6. Distressed Acquisition Project

A financially troubled company may look inexpensive, but its apparent discount can hide serious liabilities.

In a distressed acquisition case study, analyse:

• Liquidity and solvency
• Debt maturity schedule
• Interest coverage
• Working-capital pressure
• Asset recoverability
• Contingent liabilities
• Legal and regulatory claims
• Restructuring requirements
• Turnaround costs
• Recovery value under different scenarios

You should create a base case, turnaround case and liquidation case. This allows you to determine whether the buyer is purchasing an undervalued business or inheriting an unsustainable problem.

7. Post-Merger Integration and Synergy Analysis

Not every M&A project needs to focus only on valuation. Many transactions fail to create the expected value because integration is poorly planned.

A post-merger integration project can cover:

• Duplicate employee positions
• Procurement savings
• Office and facility consolidation
• Technology integration
• Cross-selling opportunities
• Supply-chain improvements
• Brand rationalisation
• Customer retention
• One-time integration costs
• Timeline for achieving synergies

The important distinction is between gross synergies and net synergies. A company may expect ₹200 crore in annual savings, but if implementation costs ₹300 crore and takes four years, the near-term economic benefit may be limited.

How to Build an M&A Case Study Step by Step

Step 1: Select the Buyer and Target

Choose companies with a logical strategic connection. The buyer should have a credible reason for acquiring the target.

Possible combinations include:

• A bank acquiring a digital lending platform
• A pharmaceutical company buying a specialist drug manufacturer
• A retail company acquiring an e-commerce brand
• A food company acquiring a regional consumer brand
• An IT services company acquiring a cybersecurity business

Avoid combining two companies merely because their financial information is available. A believable strategic rationale makes the rest of the case study stronger.

Step 2: Define the Deal Rationale

Explain what the buyer expects to achieve.

Common acquisition objectives include:

• Entering a new market
• Acquiring technology or intellectual property
• Eliminating a competitor
• Increasing market share
• Expanding the product portfolio
• Obtaining distribution capabilities
• Reducing operating costs
• Acquiring skilled employees
• Securing suppliers or raw materials

Separate management’s stated reasons from your independent assessment. A deal can sound strategically exciting while still being financially overpriced.

Step 3: Study the Industry

Examine the industry’s size, growth rate, competition, regulation and operating risks.

A useful industry analysis covers:

• Market growth
• Major competitors
• Customer concentration
• Regulatory environment
• Pricing power
• Entry barriers
• Technology disruption
• Recent transactions
• Typical valuation multiples

Current M&A activity is increasingly sector-specific. Buyers are paying close attention to AI exposure, scalable business models, recurring revenue and defensible customer relationships.

Step 4: Analyse Historical Financial Performance

Use at least three years of historical financial statements.

Track:

• Revenue growth
• Gross margin
• EBITDA margin
• EBIT margin
• Net profit margin
• Working capital
• Capital expenditure
• Debt
• Cash flow from operations
• Return on capital employed

Look beyond simple growth. Revenue may be increasing while cash flow weakens because receivables and inventory are rising rapidly.

Step 5: Prepare Standalone Forecasts

Forecast the buyer and target separately before combining them.

A five-year forecast normally includes:

• Revenue
• Operating expenses
• EBITDA
• Depreciation and amortisation
• EBIT
• Interest expense
• Taxes
• Net income
• Working-capital changes
• Capital expenditure
• Free cash flow

Build assumptions from observable business drivers. For example, revenue can be based on store count and sales per store rather than applying an unexplained growth percentage.

Step 6: Value the Target Company

Use more than one valuation method whenever possible.

Discounted Cash Flow Analysis

DCF values the target using the present value of its expected future cash flows.

Enterprise Value=∑(FCFFt)/(1+WACC)t + Terminal Value/(1+WACC)n​

The critical assumptions are revenue growth, margins, working capital, capital expenditure, weighted average cost of capital and terminal growth.

Comparable Company Analysis

This method compares the target with similar publicly traded companies using multiples such as:

• EV/Revenue
• EV/EBITDA
• EV/EBIT
• Price/Earnings
• Price/Book Value

Precedent Transaction Analysis

This approach studies acquisition multiples paid in earlier comparable transactions. It commonly produces a higher valuation because deal prices may include a control premium and expected synergies.

Step 7: Calculate the Offer Price

The market price of the target is not automatically the right acquisition price. Buyers often need to offer a premium to persuade shareholders to sell.

Offer Price per Share=Unaffected Share Price×(1+Offer Premium)

If the unaffected price is ₹500 and the proposed premium is 25%, the offer price becomes ₹625 per share.

Test several premiums rather than choosing one figure without justification.

Step 8: Decide How the Deal Will Be Financed

An acquisition may be financed with:

• Cash
• New debt
• Buyer shares
• A combination of cash, debt and shares
• Seller financing
• Private equity funding

Each financing method has different consequences.

The cheapest source of funding is not always the safest. Heavy debt may improve returns when performance is strong but can create serious pressure if expected synergies do not materialise.

Step 9: Estimate Synergies

Synergies are benefits that the combined company could not achieve independently.

Cost synergies

These may come from:

• Removal of duplicate functions
• Procurement savings
• Supply-chain consolidation
• Shared technology
• Office closures
• Lower marketing costs
• Manufacturing efficiency

Revenue synergies

These may come from:

• Cross-selling
• New distribution channels
• Geographic expansion
• Bundled products
• Higher customer retention
• Improved pricing power

Revenue synergies should be treated more conservatively because they are usually harder to achieve and verify than cost savings.

Step 10: Build the Pro Forma Financial Statements

Combine the buyer and target financials, then add transaction-related adjustments.

The pro forma model may include:

• Combined revenue and expenses
• Synergies
• Financing costs
• New shares issued
• Foregone interest income
• Asset write-ups
• Additional depreciation
• Identifiable intangible assets
• Amortisation expense
• Deferred taxes
• Goodwill
• Transaction and integration costs

This stage connects valuation, accounting and transaction financing in one model.

Step 11: Run Sensitivity and Scenario Analysis

A single forecast creates false confidence. M&A decisions should be tested under different conditions.

Create at least three scenarios:

• Base case
• Upside case
• Downside case

Test changes in:

• Purchase price
• Revenue growth
• EBITDA margin
• Synergy achievement
• Interest rate
• Financing mix
• Integration cost
• Valuation multiple
• Transaction closing date

A two-variable sensitivity table can show how EPS accretion or dilution changes at different purchase prices and synergy levels.

Step 12: Present the Final Recommendation

Your conclusion should clearly state:

• Whether the buyer should proceed
• Recommended valuation range
• Maximum acceptable offer price
• Preferred financing structure
• Expected accretion or dilution
• Main value drivers
• Major risks
• Conditions required before closing

Do not finish with a vague statement such as “the acquisition looks beneficial.” State the circumstances under which the deal creates value and what could cause it to fail.

Software and Tools Used in M&A

Excel and PowerPoint remain the most important starting tools. Python and AI can accelerate research, document review and scenario analysis, but they do not replace accounting knowledge or professional judgement.