Gartner Research

Marketing Essentials: Five Core Steps for Due Diligence on Your Potential Acquisition Target

Published: 20 October 2010

ID: G00206374

Analyst(s): Alfonso Velosa

Summary

As companies recover from the global economic downturn, many are looking to mergers and acquisitions to enhance their market position and boost revenue opportunities. We outline the five main due diligence steps that marketing executives can take to assess their acquisition targets.

Table Of Contents
  • Overview
  • Introduction
    • The Challenge
    • Implications
  • Background and Context
    • Definitions
    • M&A History, 2005 to 1H10
    • The Reasons for Engaging in M&A Activity Vary
    • Risk of Failure Remains High
    • Critical Factors That Determine the Success of M&A Activity
    • Best Alternative to a Negotiated Agreement
  • How to Assess Your Acquisition Target
    • Step 1: Start With Your Strategic Goal in Mind
    • Step 2: Establish the Market Potential
    • Step 3: Analyze Your Acquisition Target
    • Step 4: Run the Financials of the Target Company
    • Step 5: Evaluate the Strategic and Tactical Fit of Your Target to Your Firm
  • Bringing the Steps Together
  • Conclusions

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