‍Why are Accretive Values relating to business so important?

Building business value should not be stumbled into but rather build and engineered. The quote “I would rather be lucky than smart” is not a good business strategy.

Accretive income refers to the gradual or incremental growth in value for a company, typically resulting from a business deal or financial transaction. In the context of mergers and acquisitions, a deal is considered accretive if it increases the acquiring firm's earnings per share (EPS) after the transaction. This can occur when the newly acquired assets or businesses add more value to the company than the costs associated with the acquisition. Accretion can also refer to the increase in the value of a bond or security over time, such as through interest accrual. Ultimately, accretive income signifies a positive impact on a company's financial performance or asset value.

Accretive income and passive income are different concepts. Accretive income refers to the gradual growth in value for a company, often resulting from a business deal or financial transaction that increase the company's earnings per share. On the other hand, passive income is earned with relatively minimal effort, such as from rental income, dividends, or interest from investments. The key difference is that accretive income is a measure of value growth for a company, while passive income is a stream of income that does not require active involvement.

Accretive capital is important to a business owner because it refers to investments made in assets that increase the value of a company over time. In the context of mergers and acquisitions, a deal is considered accretive if it leads to an increase in the company's earnings per share (EPS). Accretive capital expenditures are vital for a company's long-term growth and success, as they involve investments that add more value to the company than the costs associated with the acquisition. This can occur when acquired assets are purchased at a discount to their perceived current market value or when they are expected to grow as a result of the transaction. Therefore, accretive capital can contribute to the overall financial health and performance of a business.

An accretive acquisition is a type of acquisition that increases the acquiring company's earnings per share (EPS). It tends 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. This type of acquisition is said to occur when the price-earnings (P/E) ratio of the acquiring firm is greater than that of the target firm.