Definition of Accretive:
A way that a company or an asset can grow through an addition of an external source. Can sometimes be used in conjunction with the acquisition of another business by a company in order to expand its size.
By definition, in corporate finance, accretive acquisitions of assets or businesses must ultimately add more value to a company, than the expenditures associated with the acquisition. This can be due to the fact that the newly-acquired assets in question are purchased at a discount to their perceived current market value, or if the assets are expected to grow, as a direct result of the transaction.
In both finance and in general lexicon, the term "accretive" is the adjective form of the word "accretion", which refers to gradual or incremental growth. For example, an acquisition deal may be deemed accretive for the absorbing company, if that deal contributes to an increase in earnings per share.
Characterized by gradual growth or increase.
How to use Accretive in a sentence?
- Despite the accretive sediment measured, there is a clear shoreline erosion.
Meaning of Accretive & Accretive Definition