BradyHawk found itself in a bidding war and paid a 32 percent premium to acquire LasLuces in 2017 and issued more stock to raise capital This illustrates what problem associated with acquisitions?

Question

Quizplus · Accepted Answer

BradyHawk issued more stock to raise capital, which indicates that the acquisition was financed with debt. Large or extraordinary debt can lead to financial difficulties and increased risk for the acquiring company.

BradyHawk Found Itself in a Bidding War and Paid a 32