What to look for in acquisitions

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Livewire Markets

Acquisitions have been a feature of the ASX in recent months as companies look for new avenues to deliver growth. Investors recently cheered on Mayne Pharma whose shares surged close to 40% following their most recent acquisition. However, there is also trail of acquisitions that have been the undoing of management teams and in some cases whole businesses (think Vocation, Slater & Gordon). In the current economic environment where organic growth is hard to come by there are likely to be many more acquisitions in the years ahead. In this thematic discussion Chris Stott from Wilson Asset Management and Ben McGarry from Totus Capital delve into the world of acquisitions. Matthew Kidman asks them what they look for in an acquisition and what are some of the red flags to keep an eye on.

Buy Hold Sell

Buy Hold Sell is a weekly video series exclusive to Livewire. In each episode two fund managers give their views 'Buy, Hold or Sell' on five ASX listed companies. Not recommendations, please read the disclaimer and seek advice where appropriate.

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