Accretive Acquisition
An acquisition that will increase the acquiring company's earnings per share (EPS). These acquisitions tend to be favorable for the company's market price because the price paid by the acquiring firm is lower than the boost the new acquisition will provide to the acquiring company's EPS. Investopedia Says:
As a general rule, an accretive merger or acquisition occurs when the price-earnings (P/E) ratio of the acquiring firm is greater than that of the target firm. Related Terms:
Accretion
Acquisition
Acquisition Loan
Dilutive Acquisition
Earnings Per Share - EPS
Price/Earnings Ratio - P/E Ratio
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