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 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 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 does accretion mean in business?

Accretion means that something grows by adding to it. In business, it can happen organically, as a company expands its operations. Or it can happen through accretive investments, which add to the company’s income and profits. Internal accretion can happen when a business reinvests its earnings into income-producing expansions.