What criteria would you use to help a client make an acquisition?
Financial Criteria:
- EPS accretion/dilution
- Does it create shareholder value? (NPV > 0)
- Sources of cash for the acquisition
Strategic Criteria:
- Growth in market share
- Industry consolidation / economies of scale
- Vertical integration
- Technological or intellectual property acquisition
- Regulatory & Political Change e.g. media & telecom (Telecom Reform Act of 1996); financial services (Glass-Stegall Act)
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