Setting Acquisition Criteria

An important initial step in the process is to understand what strategic objective the proposed acquisition is designed to meet and how it is expected to fit within the current organisation.  We will typically meet with the client and define the acquisition criteria including both 'must haves' and 'nice to haves'.  Key questions we will be seeking to answer include:

• Financial: What is the budget and expected deal structure for making the acquisition?  What is the ideal size and financial profile of a target?
• Location: Will the target be absorbed into existing facilities or remain stand-alone?  What are the criteria around the geographic location?
• Product / Service: Does the target need to have its own product?  Is the objective to extend the acquirer's product / service range?  Is the aim to achieve vertical integration?
• Market: Is the acquisition designed to open up new markets or strengthen existing markets or serve a different niche in the same market?
• Distribution Channel: Is the objective of the acquisition to open up new distribution channels?

The acquisition criteria need to be agreed ahead of the search activities but they should also be revisited as the search progresses.

If you would like further details why not Contact Us or call for a no obligation, confidential conversation on 02476 100476.