Acquisition Target Scorer
PROEvaluate M&A acquisition candidates using DCF, comparable companies, and precedent transactions. Score targets across financial, strategic, and cultural dimensions with weighted frameworks.
Example Usage
Score these three fintech acquisition targets (TechPay, PayFlow, DigitalVault) on strategic fit for our digital payments platform expansion. Each must satisfy these must-haves: positive EBITDA, minimum 30% YoY revenue growth, market cap <$500M, and experienced founding team with >5 years relevant experience. Using a 1-10 scale, provide for each target: (1) Must-have requirement pass/fail assessment; (2) Strategic Fit score with supporting rationale; (3) Top 3 key risks to integration; (4) Overall recommendation: Prioritize for detailed diligence, Consider further, or Pass. Format as a comparison table.
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Suggested Customization
| Description | Default | Your Value |
|---|---|---|
| Number of years for valuation projections and synergy timeline | 5 | |
| Minimum acceptable IRR threshold for deal approval | 20% | |
| Probability adjustment for synergy realization (0.40-0.85) | 0.60 | |
| Importance multiplier for cultural alignment (0.20-0.40) | 0.35 | |
| One-time integration costs as percentage of purchase price | 5% | |
| Confidence interval around fair value multiples | 0.20 |
Research Sources
This skill was built using research from these authoritative sources:
- M&A Target Scorecard Template Excel framework assessing targets across six dimensions with weighted scoring and automatic calculations
- Strategic Fit in SMB Acquisitions Research showing 2.3x ROI improvement with strong alignment; 15 strategic alignment factors
- Acquisition Criteria Checklist Comprehensive checklist covering SMART objectives, deal parameters, and ranking frameworks
- M&A Target Scoring Best Practices Industry best practices for establishing screening metrics aligned with strategic goals
- Valuation Methods for M&A Market-based methods, precedent transaction analysis, and net working capital benchmarking
- M&A Valuation Models and Multiples Comprehensive guide to DCF, trading comps, and precedent transactions with triangulation
- M&A Due Diligence Guide 20-point checklist covering legal, financial, operational, and cultural due diligence
- DCF vs Multiples vs Precedents Middle-market M&A playbook for triangulating value with Quality of Earnings adjustments
- M&A Integration Playbook Six-step post-deal integration framework; research shows 70% of deals fail on integration
- Strategic Compatibility in M&A Guide to evaluating strategic alignment, cultural compatibility, and integration strategies