Accretion dilution slide from Lazard's pitchbook to Tower Group.
This article is part one of a two-part series. Click here for part two.
One of the core models investment banking analysts and associates have to build when analyzing an acquisition is the accretion/dilution model. The underlying purpose of such an analysis is to assess the impact of an acquisition on the acquirer’s earnings per share (EPS).
Why is this important? Well, we’ll get to that in a second, but first let’s talk about the basic mechanics involved in performing such an analysis. First, some definitions: Continue reading
