easy · Investment Banking valuation-core
A buyer is performing an accretion/dilution analysis. The acquirer has a $P/E $ of 20x and the target has a $P/E $ of 15x. In a 100% stock deal with zero synergies, the deal is most likely:
- Accretive
- It depends on the WACC of the combined entity.
- Dilutive
- Neutral
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