medium · Investment Banking ma-lbo
A buyer is evaluating a 50% Cash / 50% Stock deal. Buyer P/E is 16x. Target P/E is 12x. The after-tax cost of debt is 5%.
Is the deal accretive or dilutive on a pre-synergy basis?
- Dilutive because of the cash portion
- Dilutive
- Accretive
- Neutral
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