| Accretive Acquisition | |
 An acquisition that will increase the acquiring company's EPS. |
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 As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. In essence, the price paid by the acquiring firm is smaller than the addition to its EPS. As a general rule, an accretive merger or acquisition occurs when the P/E ratio of the acquiring firm is greater than that of the target firm. |
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 The Wacky World of M&As - Do you want your company to sandbag or greenmail? Welcome to the dramatic world of mergers and acquisitions. The Basics of Mergers and Acquisitions - M&A deals always catch headlines, but what do these deals really mean to investors? Learn what corporate restructuring is, why companies do it, and why it sometimes doesn't work. |
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