Acquisitions are exciting for those watching the markets - and for investors, it should represent an opportunity for a company to grow and deliver returns to shareholders.

But what does a company look for when considering a takeover - and what does it mean for shareholders if they pay too much?

Roger Montgomery, Founder and Chief Investment Officer of Montgomery Investment Management, gives Sean Aylmer an investor's guide to M&A activity.

This is general information only. You should get professional advice before making an investment decision.