Phil Oakley 

Should investors avoid acquisitive companies?

Phil Oakley

Should investors avoid acquisitive companies?

Are acquisitions good or bad for shareholders? It is a fact of the business world that companies will buy other companies. Investment bankers love acquisitions because they can make a lot of money from them. Shareholders of a company being acquired often like them too. The main area of doubt is whether acquisitions are good for the shareholders of the acquiring company. Here, the evidence is mixed. As with a lot of things in investing the answer depends on the circumstances. I take a look at the world of acquisitions and highlight the danger signs to look out for and what makes for a good acquisition.

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