|Although a great deal of time, talent, and money can go into closing an acquisition, an acquisition is not an end in itself. A merger or acquisition is a process. A successful outcome to this process begins with the formulation of your value drivers and criteria, and extends beyond the closing until the desired benefits have been obtained.
Things like increasing revenues and profitability, adapting to shifting markets, responding to competitive pressures, extending global reach and gaining access to technologies are generalizations that could apply to just about any business today and are only useful when making general observations about the M&A environment.
Companies seeking to formulate their value drivers and financial criteria need to be much more specific. The critical question is: What exactly do you want to accomplish through the growth strategy of M&A? For companies with multiple strategic business units (SBU), that question should be addressed and answered for each SBU.
MoneySofts Lightning Deal Reviewer® is a value-based system that helps create a more vivid picture of an acquirers strategic motivations for one or more SBUs. The Deal Reviewer facilitates strategic thinking as it guides you through the process of identifying and ranking your value drivers and establishing the financial criteria an acquisition should meet to merit further evaluation. In addition, Deal Reviewer structures your values and criteria into an analytical tool that can be used to quickly screen acquisition opportunities. See page 2
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