M&A Sell-Side Acquirer Target Screening Nine-Box Matrix - PowerPoint & Excel Model

Description
Looking to sell a/your business ? Not sure how to identify potential acquirers ? Then this M&A Sell-Side Target Screening Matrix framework is made for you.

During my time at adVentures studio, given our mission is to create and sell ventures, we had many strategic discussions at the Partner level on who we could be selling an existing (in portfolio) or potential (idea stage) venture to.

To to this, I created a Target Acquirer Screening Matrix Template enabling to strategically position a large number of targets acquirers from multiple industries.

There are 2 major axis in the matrix.

->(Y-Axis) Acquirer Business Compatibility with Company X

- Strategy : Portfolio Management, Allocation of Resources, Organizational Design, etc.
- Markets : Overlap, Competitive Position, Expansion Potential, etc.
- Culture : Performance Reward System, Conflict Tolerance, People Orientation, etc.
- Location : Accessibility, Political Stability, Office Quality, etc.

-> Each Target Acquirer has a score for the Y-Axis calculated from the weighted average scores of each parameter & sub-parameter. An Excel File attached will enable you to choose your Parameters, Sub-Parameters, Weights and scores.

->(X-Axis) Acquirer Financial Capabilities

-> Given the "less cartesian" and variable nature of financial capabilities, I decided here not to have underlying weights and subweights for the X-Axis part. The below list can help you score from 0 to 1 the level of funds available for the potential operation for your target acquirers.

- Cash Reserves : The amount of liquid cash on hand to fund the acquisition
- Debt Levels : The acquirer's current debt obligations and their capacity to take on additional debt if needed
- Credit Rating : creditworthiness, which affects their ability to borrow funds at favorable interest rates
- Profitability : historical and projected profitability, which indicates their ability to generate cash flow
- Cash Flow : operating cash flow, which shows their ability to meet short-term and long-term obligations
- Market Capitalization : For public companies, the total market value of their outstanding shares, which can indicate their financial strength
- Access to Capital Markets : ability to raise funds through equity or debt offerings
- Financial Ratios : Key ratios such as the debt-to-equity ratio, current ratio, and return on assets can provide insights into the acquirer's financial health
- Investment Portfolio : Existing investments and their performance, which can affect their ability to fund new acquisitions)
- Economic Conditions : which can impact financial stability and access to capital

The combination of X and Y axis levels (High, Medium, Low) leads to 9 potential strategic outcomes/options:

- Perfect Match (High - High)
- Re-Structure & Sell (Medium - High)
- Sell Assets (Low - High)
- Re-position before selling (High - Medium)
- Sell for New Business Line Creation (High - Low)
- Re-structure & re-position before selling (Medium - Medium)
- Re-structure for re-sell / financing (Medium - Low)
- Sell a selection of assets (Low - Medium)
- No Go Zone (Low - Low)

After having scored each target acquirer on X and Y, they will appear on the graph. The M&A Team can then decide to make a focus on one or more boxes to go into short list analysis. You can also adjust the colors according to the various industries the acquirers may belong to (eg: Green, Black and red).

The file is 2 editable Microsoft PowerPoint Template Slides (one 4 quadrant matrix, and one 9-box matrix) with an online or offline 15 step-by-step methodology, with pedagogical illustrations for each step. An editable Excel file to adapt the data points for each target acquirer is included in the PowerPoint file.

Should you have any questions on using this top tier M&A (Mergers & Acquisitions) Sell-Side Target Acquirer screening slide, you're welcome to reach out to me via Private Message.

Good luck!
- Tim

👉 Looking for a matrix for M&A Buy-Side Target Screening on the other side of the table ? (i.e. a company looking to purchase another company), then check our popular M&A Buy-Side Target Screening Nine-Box Matrix - PowerPoint & Excel Model.

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