Dilutive Acquisition

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Definition: Dilutive Acquisition

Dilutive Acquisition
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Full Definition of Dilutive Acquisition

A business acquisition which decreases the acquiring entity’s earnings per share (EPS). An enterprise may make a dilutive acquisition if it foresees long-term growth through increased sales or cost savings in the acquisition. Further, a dilutive acquisition may be justified by strategic advantages such as copyright and technologies. Generally, an acquisition is dilutive when the price earnings ratio of the acquiring firm is less than that of the target firm.

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April 20, 2024 https://payrollheaven.com/define/dilutive-acquisition/.
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Dilutive Acquisition. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/dilutive-acquisition/ (accessed: April 20, 2024).
American Psychological Association (APA):
Dilutive Acquisition. PayrollHeaven.com. Retrieved April 20, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/dilutive-acquisition/

Definition Sources

Definitions for Dilutive Acquisition are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.