Evaluating a Target Company

• Ascertain the real reason for sale if the company is up for sale.
• Determine whether the company has been dressed up for sale.
• Find out as much about the business prior to negotiation as possible.
• Spend time and money on market intelligence.
• Attempt to quantify hard and soft synergies.

Regular progress meetings should be scheduled during the wooing stage. Communication is essential to build up trust between the parties and to develop a mutual understanding of each other¹s businesses. Logic supported by analysis is essential to convince targets of the advantages of selling. During a protracted process of negotiation it is sometimes easy for corporate attention to wander: it is therefore advisable to keep the process alive and active and maintain high interest levels.

Some caveats and hints continued in subscribers section

and other headings in the report

The importance of research

Planning an approach

Dealing with the vendor Professionals

Negotiating Techniques