Mand a toolkit screening targets

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Mand a toolkit screening targets

  1. 1. M&A TOOLKIT Strategic Fit: Screening Targets© 2007-2013 IESIES Development Ltd. All Ltd. Reserved © 2007-2013 Development Rights All Rights Reserved
  2. 2. ARE M&A DEALS PLANNED orOPPORTUNISTIC? © 2007-2013 IES Development Ltd. All Rights Reserved
  3. 3. Targets should be evaluated for their strategic fit, valuation and availability TARGET SCREENING CRITERIA Cast as wide an initial net as possible (private; public; divisions within companies)Crude Quantitative screen “Long List”: Public data only “Short List”:Fits Strategic Rationale Create profiles “Watch List”Availability/Valuation Targets to approach © 2007-2013 IES Development Ltd. All Rights Reserved
  4. 4. Targets should be evaluated for their strategic fit, valuation and availabilityStrategic Fit •How does it advance our strategy? •How does the target enhance our competitive advantage? (How will the target benefit from our competitive advantage?) •Are we buying Resources, Processes, or Values?Valuation •What is our “Value Hypothesis”? How can we test it? •What alternatives to acquisition are there? •Are we the “Natural Owner”?Availability •Is the target available at a value-creating price? •Why do the owners want to sell? © 2007-2013 IES Development Ltd. All Rights Reserved
  5. 5. It is the responsibility of the Business Development Dept to continuously monitor all potential targetsRESPONSIBILITIES OF THE BUSINESS DEVELOPMENT/M&A DEPT…..start from the company strategy…..identify where it might make sense to Buy not Make the strategy…..evaluate all potential targets against strategic and valuation criteria…..monitor all short list candidates continuously, whether available or not…..build relationships with favorite targets early (commercial relationships years before acquisition is ideal) If an Investment Bank brings you a deal……. …….it is already too late © 2007-2013 IES Development Ltd. All Rights Reserved
  6. 6. ARE DEALS PLANNED or OPPORTUNISTIC? “Chance favours the prepared mind” Louis Pasteur Do thorough PLANNING in advance……. ….so you can strike fast when OPPORTUNITIES arise © 2007-2013 IES Development Ltd. All Rights Reserved

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