M&A & Merger Models
What's the difference between accretion/dilution measured on EPS versus on a cash-flow metric, and when would an interviewer push you toward the latter?
Model answer
Standard accretion/dilution is GAAP EPS-based, which is distorted by non-cash purchase-accounting items (intangible amortization, stepped-up D&A). A cash-based view (cash EPS, or accretion/dilution…
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