If a merger or acquisition is not immediately accretive, should the acquirer go through with the transaction? Why or why not?

Question

Quizplus · Accepted Answer

The decision to proceed with a merger or acquisition should not solely depend on whether it is immediately accretive or dilutive. It is important to consider the expected synergies and growth prospects of the combined entity. If the potential long-term benefits outweigh the short-term dilution, then the deal may still create shareholder value. Therefore, it depends on the specifics of the transaction and the expected future performance of the new entity.

If a Merger or Acquisition Is Not Immediately Accretive, Should