Acquisitions do make sense when the target firms are running out of cash or unfairly trading below the tangible book value. These things happen quite often when there is irrationality and fear run deep when the economy is in the downturn.

Unfortunately, the corporate world does act appropriately, they buy their stock when the market is booming and make the acquisitions when the prices are high.

Prudent investors like Buffett builds cash pile during the final stages of the economic expansions, and wait patiently for the recession pulls the trigger when there is a blood bath on the street. End of the day, what price the target is acquired is more meaningful than the so-called synergies. Because it is hard to quantify the synergies. There is a good old saying, you make a profit on the day you buy not the day you sell.