Paragon pgc, page-5

The number of shares issued is not important at all.  It is what assets are represented in the capital and how hard the assets are worked to generated income that counts.  If they can find good businesses that compliment their existing business at good prices, why not?  If they amortise the good will over say, 10 years and every year the acquired business is generating more income, then it is earning positive and the company is growing.  If they stick to selling a few beds and wheel chairs here and there, it will be very difficult to grow.  They can beef up their product lines and sales and marketing to generate "organic growth" but it costs money as well.  Hiring more salesmen or offering more brands does not necessary mean more profit.  If they can find an existing business that is doing well with opportunities to reduce overheads and cross-selling, they can grow a lot faster, which they have been doing.  Buying a business means automatic increase in new customers which can be costly to acquire in the business-to-business environment.

At the end of the day, the share price will go up only if they can increase their earnings and convince the market of their future earning growth.  Increasing dividends is the icing.