Contribution analysis
What each side brings against what it owns.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: contribution analysis.Updated 30 September 2026
What it does
A fairness check on the exchange ratio. If the target contributes a quarter of combined earnings, its shareholders might expect about a quarter of the combined company. Where ownership and contribution diverge, one side is paying for growth, control or synergies, and the analysis makes that visible before anyone has to defend it.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Contribution, rows 6–10: Revenue, EBITDA, Net income, Pro forma ownership…
What a reviewer looks for
- Comparing contribution on unlike years.
- Ignoring that net debt sits differently on each side, so an EBITDA contribution says nothing about equity value.
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