Bigger is not necessarily better. Many automotive suppliers have gone on spending sprees, buying up rivals in an effort to become global. In some cases, those acquisitions are the industry's equivalent of steroids.
Short-term, the acquiring company draws applause for muscular sales and a slick product lineup. Long-term, the supplier may sag under its debt burden if its cash flow dries up.
Consider the case of Breed Technologies Inc. The company sought Chapter 11 bankruptcy protection after a newly acquired operation went sour.
Let the buyer beware.