Target screening forms an essential part of an M & A activity. A well-performed target screening process can prove to be priceless. With proper screening, deal terms will be more focused, aware of feasible options, be certain of the benefits and risks, and better prepared to reciprocate to competitive M&A situations.
As the corporate world concentrates more on M & A activity from a risk management perspective, Lucintel’s screening measures significantly vary across companies. It could comprise such criteria’s as size, geographic footprint, scalability, EBITDA, leverage, market share, customer base, technology, and earnings impact. Since a good screening procedure can endow the board with an acquisition strategy consistent with the company’s policy we assess the strategic fit, by:
- Considering how each target would be conducive to M & A strategy;
- Employing more subjective screens including product fit, synergy, integration challenges, etc.;
- Determining distinct challenges and hazards for each target and potential acquisition.
Our verified system not only provides immediate markets for companies to enter with sound partnering and acquisition candidates, but also a repeatable system for future evaluations.