179M&A and Joint Venture Projects
3. At the end of each line, consider the results. If the result of making a decision is uncertain,
draw a circle. If the result is another decision that needs to be made, draw another box.
Write the decision above the box or the circle.
4. Starting from the new decision squares on the diagram, draw out lines for options that
could be selected; from the circles, draw lines representing possible outcomes and make
brief notes on the line explaining its meaning.
Repeating this procedure until all the possible outcomes and decisions originating with the rst
decision are drawn is a well-structured approach to spell out the sequence of events that need to take
place to arrive at an outcome analysis. This facil ...