What is acquisition ROIC, and why is it a more honest value-creation metric than A/D?

Acquisition ROIC measures after-tax operating profit from the acquired business, including synergies, divided by invested capital or purchase price. It is more honest than A/D because it compares returns to capital invested and cost of capital. A deal can be EPS-accretive due to cheap debt but still earn below WACC and destroy value.