CHAPTER 5

Selecting a Potential Target Company for Acquisition

As was discussed in Chapter 4, the search for and screening of a potential target candidate require applying a set of criteria such as the industry of the target firm and size of the deal. Of course, the size of the transaction is determined by the price of the target company.

Specifically, selecting a target company for mergers and acquisitions (M&As) involves implementing the following tasks.

Identifying and Understanding the Industry of Target Company

In goal-oriented acquisitions aiming to fulfill the strategic plan of the acquiring firm, identification of the industry in which to acquire a company has already taken place in formulating the strategy.

To understand an industry, ...

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