Accretion/dilution analysis

Accretion/dilution analysis is a type of M&A financial modelling performed in the pre-deal phase to evaluate the effect of the transaction on shareholder value and to check whether earnings per share (EPS) for buying shareholders will increase or decrease post-deal. Generally, shareholders do not prefer dilutive transactions; however, if the deal may generate enough value to become accretive in a reasonable time, a proposed combination is justified.

Source: Wikipedia — Accretion/dilution analysis (CC BY-SA 4.0)