easy · Investment Banking ma-lbo
AcquirerCo (P/E = 20.0x) is considering an all-stock acquisition of TargetCo (P/E = 16.0x, including a 30% control premium).
Without considering synergies or transaction accounting, what is the expected impact on AcquirerCo's Earnings Per Share (EPS)?
- The transaction will be accretive.
- The transaction will be dilutive.
- The impact cannot be determined without knowing the relative sizes of the two companies.
- The transaction will be break-even.
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