Target Strategy
Acquisitions can be pursued through three approaches:
Proactive
Directly addresses strategic goals.
Reactive
Responds to external approaches in attractive markets.
Opportunistic
Seeks opportunities in previously unconsidered markets.
We recommend focusing on Highly Synergistic and Strategic acquisitions. While complementary or diversifying deals are possible, success is more likely when targets align with your core business. Economic downturns often see companies divesting non-core assets, highlighting the value of sticking to your strengths.
Narrowing the Strategy
When focusing on Highly Synergistic and Strategic acquisitions, refine your approach by considering:
1. Which growth objectives are best achieved through acquisition?
2. What product/service area should be your first acquisition focus?
3. What synergies do you expect from acquisitions in this industry?
4. Minimum profitability and size requirements?
5. What is the maximum size you’re comfortable acquiring?
6. How many companies meet your criteria?
7. What’s the ideal acquisition pace over the next five years?
Successful Acquisition Search
Our clients are typically middle-market companies with revenues between $10 million and $100 million, so understanding your target size is essential for success.