M&A Case Studies- Questions and
Complete Solutions
M&A Case Process Steps ✅Key areas to analyze: assets, target, industry, and
feasibility
- Analyze the client's company
- Analyze the target industry
- Analyze the target company
- Analyze the feasibility of the M&A
- Synergies / Risk
Analyze the Target ✅Your overall objective here will be to understand how attractive it
is both financially and strategically.
- What is the current and future financial position of the target (e.g.: revenues, profits,
etc.)? Is it under / overvalued?
- Does the target own any assets (e.g.: technology, brands, etc.) or capabilities (e.g.:
manufacturing know-how) that are strategically important to the buyer?
- What's the quality of the current management? Do we believe we can add value by
getting control and running the company better?
- Is the target company's culture very different? If so, are we confident it could still
integrate well with the buyer?
- Why does the client want to acquire?
(a) Strategic (market position, growth opportunities, diversification of product portfolio)
(b) Defensive (acquisition by another competitor could make the competitor
unconquerable)
(c) Synergies/value creation (cost saving opportunities such as economies of scale,
cross-selling, brand)
(d) Undervalued (ineffective management, unfavorable market, and the client has the
power to bring the target company to its potential value)
- Industry?
- Which other businesses does the client possess? Lookout for synergies
- Client's key customer segments?
Analyze the Market ✅- Are both companies (buyer / target) in the same markets (e.g.
geographies, customers, etc.)?
- How big is the market? And how fast is it growing?
- How profitable is the market? And is its profitability stable?
- How intense is the competition? Are there more and more players?
Complete Solutions
M&A Case Process Steps ✅Key areas to analyze: assets, target, industry, and
feasibility
- Analyze the client's company
- Analyze the target industry
- Analyze the target company
- Analyze the feasibility of the M&A
- Synergies / Risk
Analyze the Target ✅Your overall objective here will be to understand how attractive it
is both financially and strategically.
- What is the current and future financial position of the target (e.g.: revenues, profits,
etc.)? Is it under / overvalued?
- Does the target own any assets (e.g.: technology, brands, etc.) or capabilities (e.g.:
manufacturing know-how) that are strategically important to the buyer?
- What's the quality of the current management? Do we believe we can add value by
getting control and running the company better?
- Is the target company's culture very different? If so, are we confident it could still
integrate well with the buyer?
- Why does the client want to acquire?
(a) Strategic (market position, growth opportunities, diversification of product portfolio)
(b) Defensive (acquisition by another competitor could make the competitor
unconquerable)
(c) Synergies/value creation (cost saving opportunities such as economies of scale,
cross-selling, brand)
(d) Undervalued (ineffective management, unfavorable market, and the client has the
power to bring the target company to its potential value)
- Industry?
- Which other businesses does the client possess? Lookout for synergies
- Client's key customer segments?
Analyze the Market ✅- Are both companies (buyer / target) in the same markets (e.g.
geographies, customers, etc.)?
- How big is the market? And how fast is it growing?
- How profitable is the market? And is its profitability stable?
- How intense is the competition? Are there more and more players?
