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What Indicators Would Quickly Tell You If An M&a Deal Is Accretive Or Dilutive? |
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Answer» The quickest way to tell if a deal between two public companies WOULD be accretive is to compare their P/E multiples. The company with a higher P/E multiple can acquire lesser valued companies on an accretive basis (assuming the TAKEOVER premium is not too high). Another IMPORTANT FACTOR is the form of CONSIDERATION and mix of cash vs share. The quickest way to tell if a deal between two public companies would be accretive is to compare their P/E multiples. The company with a higher P/E multiple can acquire lesser valued companies on an accretive basis (assuming the takeover premium is not too high). Another important factor is the form of consideration and mix of cash vs share. |
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