- Are the company extending themselves
- In the event that this fail, would it make the overall company a much poorer investement?
- Has the company successfully acquired and integrate parcels of business before?
- Would the financing put the company structure in a worse of state
- Is the IRR provided by the management realistic?
Acquisitions can turned into massive money losing events. As investors we should always be sceptical about things always working the way we want.
Here is a nice plug from Firmex which shows some of the worse acquisition disasters :
What investors can learn from this is to managed their expectations about acquisitions.