Accretion
Short definition
Accretion is the deal lifting EPS (or FCF per share) above the stand-alone. It is not a proxy for value creation; accounting earnings can skip cash and the ROIC hurdle.
Detailed explanation
Cash plus cheap debt on a low-multiple target lifts EPS — even if WACC and ROIC worsen. A share issue does the reverse and dilutes.
Amortisation, inventory and synergy timing break year-one EPS. The market can cheer an accretive deal and punish value.
Why it matters for the CFO
A board can pass an expensive deal because “EPS will rise”. The CFO’s job is ROIC–WACC and the cash bridge on the same slide.
How it is calculated
Artırıcı ≈ birleşme sonrası EPS > duran EPS (finansman ve sinerji sonrası)
Variables in the formula
- EPS: earnings per share
How to read it
Accretive plus ROIC < WACC is an accounting win and a value loss. Conversely, temporary dilution should not kill a valuable job.
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Definitions are educational. They are not investment, credit or tax advice.