Motivation for M&A
- market access.
- diversify their holdings.
- pre-empt the competition.
- tax advantages.
- synergies: marketing, financial, operations.
- create shareholder value.
- What kind of shape is the company in?
- How secure are its markets, customers and suppliers?
- How is the industry doing overall?
- And how is this company doing compared to the industry? Are they a leader in the field? Margins? Are they high-volume, low-margin, or
- low-volume, high-margin?
- Competitive Response
- Value of single company
- Key capabilities (marketing, R&D, distribution channels..)
- Competition (market shares, competitive response)
- Value of synergies
- Alternatives – depends on motivation