Valuation & Deals · Relative value & deals
M&A Accretion / Dilution
Will a deal raise or lower the buyer's earnings per share? Build pro forma EPS for stock, cash and debt deals, use the P/E shortcut, add synergies, and learn why 'accretive' doesn't mean 'creates value'.
Step 1 of 6 · Overview35 min read ·
Key idea
Prereqs: LBO modeling; Comps & precedents; Income statement. Next: Python for finance. Follows Rosenbaum & Pearl ch. 7, Mergers & Inquisitions and Wall Street Prep merger-model guides.Next: 1. The question