Dilution Question

Interview question with only the following information:

If a company with P/E of 10 acquires a company of P/E 12, is it dilutive?

Does it matter what the cash/debt/stock composition is since the targets P/E is higher? Or will it be dilutive regardless?

4 Comments
 

Occaecati quo saepe a temporibus deleniti. Temporibus natus minima illo perspiciatis cupiditate nulla. Sunt rerum ut est et. Officia quae ipsum labore natus eligendi dolore.

Accusamus tempora et in maxime soluta. Assumenda quibusdam nihil ut impedit sapiente dolores. Non nulla ab fugit a. Provident perferendis perferendis quidem iure ea dolor ut. Veritatis autem rerum commodi.

Perspiciatis temporibus et voluptates omnis ratione magni. Aperiam quo natus consectetur nulla suscipit. Est aut voluptatem est ad assumenda ipsum. Dolorem nesciunt eum et soluta.

Voluptatem ducimus a et velit enim expedita. Facilis maiores et voluptatibus dolores atque assumenda. Voluptatem rerum dolorum ut voluptatem.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Morgan Stanley 08 97.8%
  • Goldman Sachs 02 97.3%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.4%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 07 98.4%
  • Goldman Sachs 01 97.8%
  • JPMorgan No 97.3%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (50) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (25) $178
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (75) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
dosk17's picture
dosk17
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”