easy · Investment Banking valuation-core
AcquirerCo is buying TargetCo for $500 million in an all-stock deal. AcquirerCo has a P/E of 20x and TargetCo has a P/E of 15x.
Assuming no synergies and no transaction fees, will the deal be accretive or dilutive to AcquirerCo's EPS?
- Neutral
- Dilutive
- Accretive
- It depends on the relative size of the two companies.
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