What does accretive mean?

To be accretive is to increase earnings per share. How Does Accretive Work? This term is most often used in the context of acquisitions. Let's assume Company XYZ has EPS of 25 cents this year. Next year, it acquires Company ABC.

What are accretive deals?

Accretive deals can occur if acquired assets are purchased at a discount to their perceived current market value. --In general finance, accretive investments refer to any security that is purchased at a discount. In general finance, accretion refers to the change in the price of a bond or security.

What is accretive acquisition in finance?

In finance, assets can be accretive by increasing in value over time. Whenever an asset is purchased at a discount, there is opportunity for accretion. The increase in value shows up as capital gains on the acquirer's financial statement, and may show up in the books as accretion. What is an accretive acquisition?

What is an example of an accretive asset?

In finance, an asset is accretive if its value increases above what you pay for it. The most common example of an accretive asset is a bond that you purchase at a discount to the face value. For instance, if a bond will pay $1,000 at maturity, any purchase price below $1,000 will result in accretion.