Chapter 2. Finding candidates

Introduction: have a sound acquisition plan

The most successful acquisitions are those that fit within a predetermined strategic plan but as the ideal targets are rarely immediately for sale, acquirers may have to react opportunistically when the right target companies become available. Well-run groups keep a watching brief on good acquisition candidates. Their homework allows them to react when a business becomes available. It also avoids the difficulty of having to convince a sceptical board of the logic of a previously unadvertised deal.

Figure 2.1 below shows that purely opportunistic acquisitions have the lowest success rate. Those acquisitions which were identified opportunistically, but which were part of a predetermined ...

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