When discussing the pros and cons of purchasing, practitioners often talk about the impact of the transaction on the buyer EPS (EPS). The acquisition is called "accretive" if EPS buyer goes up after the deal is "dilutive" if EPS buyer goes down. Explains why managers are concerned accretion and dilution, how to tell if the transaction accretive why high PE buyers can pay and still accretive transaction, how accretive transaction may be bad (and dilutive offers good), and how much accretion or dilution expected given of this transaction. "Hide
Carliss Y. Baldwin on 4 pages. Publication Date: October 18, 2007. Prod. #: 208059-PDF-ENG
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