Acquisition

Motivation

Identify the relevant motivational elements for the parent and prioritize

Resources

Capacity

Segment presence

Brand

Channel

Human Capital

Favourable Location/Presence

Regulatory

Customers

Cost

Eco of Scope

Resource Rationalisation

Eco of Scale

Strategic

Competetive Preemption

Backward/Forward Integration

Consolidation in the industry

Diversification to reduce cyclicity

Antitakeover for self

Financial

Capital restructuring

Excess Cash

Tax incentive

loss consolidation

transfer pricing

Fit Assesment

Evaluate the target on the identified/prioritized motivations

Realizability

Time

Cost

Probability

Target ownership

Geographical Spread/Scale

Extent of restructuring

Cultural fit

Post merger integration capability

Operational (Systems & processes) diversity

Senior management commitment

Value

Value of the target standalone

B/S analysis

Comparable analysis

FCF analysis

Value of synergies

Potential cost of inaction

Evaluation of alternatives to Merger

Joint Venture

Technology licensing

Part purchase