Back to M&A questions
🤝 M&A
Medium

In an all-stock M&A transaction, how do you quickly know if the deal is accretive or dilutive (without modeling)?

Answer

Compare the buyer's earnings yield (1/P/E) to the seller's earnings yield. If the seller's yield > the buyer's cost of stock (1/buyer P/E), the deal is accretive.

Continue reading the full answer

Plus the detailed banker explanation of what interviewers are really testing.

accretion dilutionstock dealshortcut