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How Would You Know If An Acquisition Is Dilutive? |
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Answer» If your current shareholders’ EARNINGS PER share go down after the transaction, this WOULD be dilutive. However, if your current shareholders’ earnings per share go up, then it would be accretive. It is best to look at the EFFECTS over a number of years; otherwise, this could be a bit SHORT sighted. If your current shareholders’ earnings per share go down after the transaction, this would be dilutive. However, if your current shareholders’ earnings per share go up, then it would be accretive. It is best to look at the effects over a number of years; otherwise, this could be a bit short sighted. |
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