Merger, Acquisition, JV Analysis Templates

Originally published: 12/02/2024 09:17
Last version published: 13/02/2024 11:10
Publication number: ELQ-91007-2

Merger, Acquisition, JV Analysis Templates

11 Powerpoint Templates to perform standardized research and Merger & Acquisition strategy.

by Newron Labs
Turn data into strategic insights in record time.

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merger acquisition joint venture merger strategy acquisition strategy

Description

Evaluate price to acquire (use back-of-the-envelope Valuation techniques to consider whether the deal is reasonably priced, such as those based on Comparable Company Analysis or Precedent Transaction Analysis)
Perform Target company-specific analysis

Market position
Customer Concentration and customer certainty
Supplier relationships and supplier certainty
Barriers to Entry
Reputation and brand loyalty
Product/regulatory/technology risks

Compute expected profitability resulting from acquisition

Pay-Back Period/Net Present Value/Internal Rate of Return based on current operations and growth estimates
Add in Cost or Revenue improvements from Synergies (see below)
Subtract out Integration and Restructuring expenses (also determine whether the project is feasible)
Compare with similar projections if the Company were to endeavor to grow organically (required capital expenditures, cost of marketing strategy, etc.)

Estimate Synergies

Ability to combine or leverage joint distribution channels across products produced by acquirer or target
Value of expending geographic/market reach
Cost synergies (such as spreading overhead costs across a larger combined business or combining redundant IT systems)

Evaluate other transaction dynamics

Strategic fit
Cultural challenges
Competitor response

Assess the medium-to-long-term plan for the acquisition

Plan to exit (if relevant—note that this will always be relevant for Private Equity firms)
Plan to restructure the organization, if any, and how/why

This Best Practice includes
11 powerpoint slides

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