Accretive

Accretive refers to a situation where an action, such as an acquisition or investment, increases the value of a company's earnings per share (EPS). When a transaction is accretive, it means that the combined profits of the two companies or the return on the investment will result in higher EPS for the acquiring company, benefiting shareholders. This is often a key goal in mergers and acquisitions, as it indicates that the deal will immediately add value to the company’s financial performance.

Example

If Company A buys Company B, and the combined company’s EPS increases after the acquisition, the deal is considered accretive.