Why does an accretion/(dilution) analysis just include the transaction-related D&A and not the acquirer's pre-transaction D&A?
Calculation:
acquirer's projected EBIT
+ target's projected EBIT
+ expected synergies
- transaction-related D&A
- acquirer's interest expense
- transaction-related interest expense
- tax expense
= pro-forma Net Income
/ (acquirer's fully diluted shares + new shares issued)
= pro-forma EPS
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