How would I calculate “break-even synergies” in an M&A deal and what does the number mean?

To do this, you would set the EPS accretion/dilution to $0.00 and then back-solve in Excel to get the required synergies to make the deal neutral to EPS.

It’s important because you want an idea of whether or not a deal “works” mathematically, and a high number for the break-even synergies tells you that you’re going to need a lot of cost savings or revenue synergies to make it work.