From recent news release explaining Mr. Krafts focus :
Michael Kraft is known for strategic vision, business development, and creating long-term organizational value from customers, markets, and strategic partners. As President/CEO he's led many companies in advanced materials and helped grow revenues from start-up to $300 million and established them as strategic suppliers to worldwide markets and partners of the Global 500. Michael has also been a member of two senior executive teams that grew revenues from ~$100 million to $1 billion range and in both companies increased shareholder value to >$1 billion. His focus is to quickly identify critical business drivers, grow revenues and market share organically, build strategic partnerships, and complete accretive acquisitions. Michael is excellent in international market development, deal management, transaction diligence, public and private M&A, integration, and synergy realization. He's led eight (8) global, multi-cultural acquisition teams ranging in purchase price from $5 million to $1.5 billion.
What is an 'Accretive Acquisition'
An accretive acquisition will increase the acquiring company's earnings per share (EPS). Accretive acquisitions tend to be favorable for the company's market price, because the price paid by the acquiring firm is lower than the boost that the new acquisition is expected to provide to the acquiring company's EPS. As a general rule, an accretive merger or acquisition occurs when the price-earnings (P/E) ratio of the acquiring firm is greater than that of the target firm.
BREAKING DOWN 'Accretive Acquisition'
An accretive acquisition increases synergies between the acquired and the acquirer. A synergy occurs when the combination of two organizations produce a combined value that is greater than the sum of the separate parts. So, value in an accretive acquisition is generated because the buyer of a smaller company is able to add the acquired business's pro-forma EBITDA/earnings ratio to its own EBITDA/earnings ratio. If the acquisition is done correctly, the purchasing company has a higher enterprise value (EV)/EBITDA multiple, and the addition of the acquired company increases the total value of the combined entity.
An Example of an Accretive Acquisition
There are many cases where an established company seeks to add value to its shareholders through a strategic acquisition. Unlike an acquisition that is conducted due to research and development or product acquisition purposes, as was the case with Facebook's purchase of Oculus Rift, an accretive acquisition immediately increases the value of the acquiring company's stock.
GREAT THINGS AHEAD !!!!!!!!!!!
AI
