Selection Criteria for an acquisition candidate

There are a number of criteria that could be considered when looking for an acquisition candidate.

The criteria you consider to be important for an acquisition candidate might include the following:

    Size of candidate     Growth Rate     Product Range
    Location     Management     Overall Asset Quality
    Market Characteristics     Image     Organisational Fit
    Price     Customer Mix     Special Conditions

Size of candidate - are you looking for a candidate of a particular size (e.g. suitable for subsuming into your own organisation? Large enough to add significant market share?)

Location - are you looking to extend your geographic range or add depth to existing locations?

Market characteristics - what market characteristics are you looking for in a target?

Price - how much are you prepared to pay to gain the anticipated benefits?

Growth rate - what additional potential for growth exists in the market?

Management - what management style or culture should the target have? Are you looking to buy a strong management team?

Image - what should be the image of the target? How should it compare with your own?

Customer mix - what kind of customer base should the target have? Are you looking to expand your own customer base or add new types of customers?

Product range - are you looking to extend your product range?

Overall asset quality - what quality of assets are you looking to buy?

Organisational fit - how close must the organisational fit be between your own organisation and the target?

Special conditions - are there likely to be any special conditions imposed by regulators or governments associated with the transaction?

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