In which scenario a company will go for a dilutive M&A?



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As explained in case of dilutive deal the share prices goes down, why will a company go for a dilutive deal. Also, if in future the deal gives lot of profits; how do we determine that?

1 Answer(s)


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Nobody knows what is going to happen after M&A thats why analyst say that "Financial modeling is more of art than science". Sustaining benefits of synergies is totally dependent on how the merged firms are performing, integrating and co-operating. It is not 100% sure that deal is always accretive.