Which is NOT a key driver for achieving maximum accretive effects in a transaction?

In mergers and acquisitions, achieving accretion, or an increase in earnings per share (EPS), is influenced by several key factors. The target company’s projected earnings are crucial because higher projected earnings can lead to greater accretion when combined with the acquirer’s operations. This directly impacts the overall financial performance after the transaction closes.

Synergies, which refer to the cost savings or revenue enhancements that occur as a result of the merger, also play a significant role in driving accretion. Effective integration of the two companies can lead to improved efficiencies and greater profitability.

The form of financing is another important consideration, as different methods of financing (e.g., cash, debt, equity) can affect the deal’s structure and its implications for earnings. For example, using debt might lead to interest expenses that could impact EPS, while using equity may dilute shares.

In contrast, the cost of raw materials, while undoubtedly a factor in a company's balance sheet and profit margins, does not typically drive the immediate accretive effects of the acquisition in the same way that the other elements do. It’s more about the operational and financial efficiencies gained from the merger rather than the price of materials used in production. Therefore, it is not considered a key driver for