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CAPABILITY


Acquisition/Alliance Target Screening

Identifying the best strategic fit for your organization

A key goal of M&A should always be to fill strategic gaps. Yet many companies base primary candidate screening mostly on financials. Instead, the first screen should be whether an acquisition could satisfy a strategic need, such as filling geographic, skill, product or capability gaps. This also helps expand the universe of possible targets by including the acquisition of product lines (instead of entire companies) and/or orphan divisions.

Accenture Strategy uses a value-driven rather than a purely financial approach for identifying and screening acquisition or alliance targets. We design screening criteria to assess whether the deal will fill strategic gaps, and frameworks to identify and quantify the expected value from an acquisition or alliance. We then evaluate and prioritize candidates based on their strategic rationale, synergistic value and the likelihood of getting the deal done.

Key target screening activities we support:

  • Assessing high-level synergies with potential targets

  • Identifying and prioritizing candidates

  • Building business cases and assessing potential value

  • Preparing for contact with targets

  • Confirming the approach to the target