Accretion Dilution Approaches

This question tests your understanding of the two standard frameworks used in accretion and dilution analysis. Candidates need to know how to think about deal impact from both a per share starting point and a combined income statement approach, and how transaction effects such as financing, share issuance, synergies, and purchase accounting adjustments flow through to EPS. Interviewers ask this because accretion and dilution is a core M&A concept, and bankers are expected to explain not just the mechanics of the model, but also how to organize the analysis in a clear and logical way.