meaning of accretive acquisition

accretive acquisition meaning in Law Dictionary

n purchase that may boost the companies EPS when you look at the report period. It is because a business with an increased P/E buys a lowered P/E business.

accretive acquisition meaning in Business Dictionary

a kind of purchase that will be likely to boost the acquiring business's EPS over a reported duration. This often takes place when an organization with a higher P/E proportion acquires a company with a lower P/E ratio, forecasting development potential by combining the cheaper valuation of the target company because of the greater valuation, or revenue expectations, regarding the acquiring company.