What dollar value of synergies needs to be realized for a Company A to Company B purchase to be accretive?

The definition of an accretive acquisition revolves around the idea that the acquiring company's earnings per share (EPS) should increase post-acquisition. For an acquisition to be deemed accretive, the synergies realized must at least match the premium paid over Company B's market value.

In an acquisition, the premium is the additional amount that Company A pays over Company B's current market value to acquire the company. This premium is often justified by the expected synergies that will be realized from the merger, such as cost reductions, increased revenue opportunities, and operational efficiencies.

If these synergies do not at least match the premium paid, then the EPS of Company A may decrease because it has spent more on acquiring Company B than the financial benefits it expects to gain from the merger. Therefore, achieving synergies that equal at least the premium ensures that the additional value generated offsets the initial investment, thus making the transaction accretive to Company A's shareholders.

The other options do not adequately capture the relationship between the acquisition cost and the necessary synergies for an accretive transaction.