Merger & Acquisition has been a widely debated topic on whether it will bring value to existing shareholders. Of course, when we talk about this, investors and analysts will think the likes of accretive or dilutive deals.

In general, almost all existing investors would be happier to see an accretive deal being carried out. They would suck their thumbs if a dilutive deals is carried out. The reason for this is because an accretive deal increases the earnings per share of the company which would translate into a higher market price and for a dilutive deal vice versa.

The impact on EPS is by far the most emphasized metric used to evaluate an accretive or dilutive deals without any consideration for other reasons. Take a look at the survey done by A.T Kearney on recent M&A data collected, up to 75% emphasizes on EPS while a distant second emphasizes on other ...