Guide to Acquisition Strategy and Valuation Methodologies (PowerPoint PPTX)

For any business looking to engage in acquisition activity, it is critical to understand what your strategy is. Acquisition and investment is more than a financial exercise, there has to be a strategy intent as well.

This document is in three main sections to help formulating an acquisition strategy:

1. Identifying the Acquisition Target and Process
2. Diligencing the Target
3. Evaluating Other Strategic Considerations

Followed by a overview of valuation methodologies commonly used to value targets:

1. Public Market Comparables
2. Merger Market Comparables
3. DCF
4. Pro Forma

This powerpoint is designed to give a good foundations and building blocks for those interesting in learning more about the above techniques.

This guide delves into the intricacies of the acquisition timeline, breaking down the process into distinct phases: Preparation and Evaluation, Decision, Negotiation/Auction, and Execution. Each phase is meticulously outlined with key activities such as retaining a financial advisor, conducting due diligence, and finalizing financial terms. The timeline provides a clear roadmap for managing the acquisition process efficiently and effectively.

The document also emphasizes the importance of thorough due diligence, covering market overview, financials, and customer mix. It highlights the need to assess key performance indicators, historical and projected financials, and capital structure. Understanding these elements is crucial for making informed decisions and ensuring the acquisition aligns with strategic objectives.

Strategic considerations are another focal point, addressing motivations for selling, alternatives to selling, and financing the transaction. The guide explores various scenarios, such as industry consolidation and spin-offs, and evaluates potential buyers and financing options. This comprehensive approach ensures that all aspects of the acquisition are considered, reducing risks and enhancing the likelihood of a successful transaction.