These are all good questions to ask. The justification for...

These are all good questions to ask. The justification for acquisitions come in many forms, but they rarely play out like the MD's slide deck after the ASX announcement. Acquisitions are only of value if new revenue can be unlocked from either the acquirer or the target, and/or significant costs pulled out of both.

Continued revenue growth comes from the people driving the business units. When the guy who set up the business that was bought walks out the door - you got to wonder what the impact on revenue will be now the main catalyst for that growth is no longer on the team? The old potentialx revenues will probably not be reported as a separate item, so it will be somewhat difficult for outsiders to determine if the acquisition was worth the effort.

As for the stock overhang from the departure of the key executive, the price at acquisition was $.52. The valuation of potentialx is now half what it was when they signed the deal. Who would do that deal? I reckon he's in for the long haul.