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M&A: Is this deal accretive or dilutive?
Your client wants to acquire a competitor. Determine if the deal creates or destroys per-share value — in 6 steps.
Corporate FinanceAdvancedCalculation
Senior banker briefing:
"Client EuroChem wants to acquire NordPlast. Run the accretion/dilution."
EuroChem (acquirer): NI €300M, 150M shares, price €40, P/E 20x NordPlast (target): NI €80M, 60M shares, price €18, P/E 13.5x Deal: 33% premium (€24/share), 100% stock, net synergies €20M
Given
| EuroChem NI | 300 M€ |
| EuroChem shares | 150 M |
| EuroChem price | 40 € |
| NordPlast NI | 80 M€ |
| NordPlast shares | 60 M |
| Offer price/share | 24 € |
| Net synergies | 20 M€ |
Question 1/6
Step 1. What is EuroChem's pre-deal EPS?
Your answerEnter a number in €
€
0/6
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