This is one of the less ideal reasons for a merger. It occurs when the target’s P/E ratio is lower than the acquirer’s P/E ratio, resulting in an increase in the acquirer’s EPS after the merger. However, this is purely a numerical phenomenon and does not create any value or synergies.
Subscribe to Newsletter
Stay ahead of the game and join our exclusive community of industry experts by subscribing to our newsletter today! We promise that we will never spam you!