Hi there,
I like your comment - the market is a little out of control - I do agree with that statement as it seems the markets are acting irrationally on every bit of news. I was shocked to see DND jump the way it did when it announced the Australian acquisition yesterday.
I was alos surprised when LSPD jumped the way it did. Less surprised with DOC as when it was making its acquisitions, it was trading at a discount to peers such as WELL and TDOC. It is also a small cap which does tend to move on acquisition news. It did however, likely get a head of itself at the 3.50 mark. I have confidence it will get there again.
So to answer your question - in a normal market, an acquisition does not automatically send a share price soaring. As you pointed out, there are many risk factors and price paid for an acquisition is very important.
The LSPD and DND's acquisitions are important ones - because it allows them to expand in two key markets (US and AUS). If they can establish themselves in these markets, and come out as leaders, then no question the deals were worth it. As you said however, it is not a guarantee.
Mat