Question:

A company with a higher P/E multiple acquires one with a lower P/E multiple. Is this deal accretive or dilutive?

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Answer:

It depends on how the buyer is paying for the acquisition.

If it's an all stock deal, then the deal will be accretive.

If it's not an all stock deal, then you would need more information to know whether the deal was accretive or dilutive.

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