M&A Strategy: Processing the long and short list
THIS IS THE FREE, REDACTED VERSION OF THE TASKS IN THE M&A REFERENCE MODEL AND IT IS LICENSED UNDER Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International THE FULL SET OF DATA HAS TO BE LICENSED COMMERCIALLY. HERE is a full model example for one task. The task has the following goal(s):
Shortlist of targets: created
The task has the following objectives:
Information asymmetry: minimized
Synergy: maximized
Short description of task Processing the long and short list:
From the set of potential targets in the long list, a subset is formed as a short list. The longlist is processed to determine the fit of the candidates of the longlist with the requirements and plans of the buyer.
The task uses the following business object types:
Product bundle of the buyer, Product of the buyer, Partner of the buyer, Value for the customer of the buyer, Buyer business model, Ecosystem of the buyer, Draft financing concept, Financial position of the buyer, Buyer, Shortlist of targets.
Tool: Patev Patent-based target search
The tool automates the following actions
Process the longlist: partially automated.
Process the shortlist: partially automated.
Create indicative valuations: partially automated.
Eliminate target candidates: not automated.
Approve shortlist: not automated.
Questions to be used during the execution of the task
The task is executed with the following questions, among others:
Which decision criteria should be used to prioritize target companies?
What is our financial firepower, the maximum pricetag we are willing and able to pay ?
What is our draft financing concept for the acquisition?
Which companies on the list are willing to be acquired ?
Are these companies valued appropriately and might we able to acquire the company ?
What are the target company's financials, including revenue, EBITDA, margins, and growth rates? How do they compare to industry benchmarks?
What is the current ownership and management structure of the target company?
What is the strategic goal fit of each potential target company?
What are the strategic capabilities fit of each potential target company and how does each target align with the acquiring buyer's existing capabilities, resources, and culture?
What is the strategic assumptions fit of each potential target company?
What is the target company's product or service offerings, and how do they fit into the acquiring company's product or service portfolio?
What is the business model fit of each potential target company?
What is the customer ecosystem fit of each potential target company?
What is the target company's customer retention and churn rate?
What is the target company's sales and marketing strategy, and how does it compare to the buyer company's strategy?
What is the partner ecosystem fit of each potential target company?
What is the sales model fit of each potential target company?
How do executives of both companies get along with each other?
How does each potential company fit with our operating model?
How does each potential company fit with our resource model?
Which are the key resources of each company?
What is each potential target company's fit with our ecosystem?
What is each target company's intellectual property portfolio, and how does it fit into the acquiring company's IP strategy?
What is each target company's intellectual property portfolio, and how does it fit into the acquiring company's IP strategy?
What are the key risks and opportunities associated with each target company, including its operational, financial, legal, and regulatory risks?
What are the target company's brand reputation and recognition, and how does it fit into the buyer company's brand strategy??
What is the target company's research and development capability?
What are the target company's manufacturing or service delivery processes,?
What is each target company's talent pool and how does it fit into the buyer company's workforce?
THIS IS THE FREE; REDACTED VERSION OF THE TASK IN THE M&A REFERENCE MODEL: THE FULL SET OF DATA HAS TO BE LICENSED(C) Dr. Karl Michael Popp 2025