Is buyback good for investors?

Buyback is good for investors in many senses. In tender offer buyback, shareholders have an opportunity to tender their shares and thereby sell shares at a premium price than the current market price. Thus, stock buyback provides an easy exit route to investors.

However, shareholders who choose to remain invested in the company get the benefits of higher EPS (Earnings per share) as after buyback, total earnings is distributed into less number of outstanding equity shares.