How would amortization of intangibles make an acquisition dilutive?
I understand that logically, if intangible assets are amortized, then the company is going to take a hit to the income statement. But this doesn't happen right away, right? I mean, the company would have to re-asses its assets (like Ebay/Skype) and then do a goodwill impairment. So how does amortization of intangibles come into play at all in an acquisition to make it DILUTIVE?
Thanks in advance..