Absolutely. That doesn’t mean it is always justified. Some examples where it may be justified is if there is a strong business case to deter competitor bids. Perhaps the IP of the acquired company is critical to the long-term growth of the acquiring company or perhaps by acquiring the company, the acquirer is able to firm up market share and deter competition within a particular geography. While one would think these reasons may impact the ROI positively, sometimes the true ROI is not realized for many years after the acquisition, if at all, and thus the appearance in the near term is that the acquirer overpaid. In the end, as long as the transaction thesis is realized and the purchase does not destroy value in the merged entity, the price – perceived as overpaid or not – could be justified.