PubCo's management is initially very confident that the acquisition will be accretive to earnings. But a few months after the deal closes, PubCo announces that ABC's management was engaged in accounting fraud that grossly inflated its revenue andprofitability. Despite PubCo's management asserting ...
As a rule of thumb, analysts look to each company's P/E ratio. If the target company has a smaller P/E ratio, the merger should be accretive. However, a momentary increase in EPS does not necessarily mean that the deal will be a long-term success.Successfully executing a mergeris a ...
Marketable Minority Level.On the other hand, this is the value of what the redeeming company is acquiring. Why should the family business pay any less than that? From an economic perspective, a redemption at the nonmarketable minority level is accretive to the non-selling sharehold...
If this sounds like trite business advice, it’s because in the frothy excitement of the current hype wave, it’s easy to mistake anything “LLM” as cutting-edge accretive differentiation, missing which applications are already old hat. AI in the loop; humans at the center Right now, ...