Target screening is an integral part of an M & A activity. The rewards of a well-executed target screening process can be invaluable. If screening is done properly, deal teams will be more focused, aware of viable alternatives, confident of the benefits and risks, and better equipped to respond to competitive M&A situations.

As corporate are more focused on M & A activity from a risk management perspective, our screening criteria vary substantially across companies. It could include criteria such as size, geographic footprint, scalability, EBITDA, leverage, market share, customer base, technology, and earnings impact. As a good screening process can equip the board with an acquisition strategy consistent with the company’s policy we evaluate the strategic fit, by:

• Considering how each target would contribute to M & A strategy;
• Applying more subjective screens, including product fit, synergy, integration challenges, etc.;
• Identifying unique challenges and red flags for each target and potential acquisition.

Our proven system not only provides immediate markets for companies to enter, with sound partnering and acquisition candidates, but also a repeatable system for future evaluations.