I am assuming one of the big problems was that the old CFO was...

I am assuming one of the big problems was that the old CFO was part of the key decision making team for this acquisition.

Given the huge array of issues shown in the most recent financials, I'd be guessing that decision to purchase was made based on the same metrics.

The key question remains whether the new reporting metrics are realistic or potentially too conservative.

The DD report would be interesting to read. It may well have pointed out some of the potential problems but these concerns may have been discounted.