Long term goals · Build, buy or ally · Component
Acquisition case
The reasoning for acquiring a particular business, the value expected from combining it, and the price above which the deal is declined.
The deliverable
What it is
An acquisition case sets out why buying this company serves the growth move and what the buyer expects to gain beyond what the business is worth on its own. That extra value is what justifies paying a premium.
The valuation itself follows the method under Investment appraisal. The case holds the strategic reasoning and the decision limits that the valuation informs.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
Strategic rationale
Why acquiring this company serves the growth move better than organic expansion or an alliance, in a few plain sentences.
2 attributes: Rationale · Growth mode decision
LearnSynergy estimate
The additional value expected from combining the businesses — cost, revenue or capability — with timing and confidence.
4 attributes: Estimated value · Synergy type · Confidence · Expected by
LearnWalk-away price
The highest price the organisation will pay, set before negotiation begins, and who may authorise going above it.
3 attributes: Maximum price · Basis · Authority to exceed
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Keep cost and revenue synergies apart. Combined into one figure, the less reliable one carries the case unseen.
The other components in build, buy or ally
Growth mode decision
For one growth move of the business: what it requires, the answers to the mode questions, and the route chosen.
LearnAcquisition diligence scope
What is examined in a business whose ownership, liabilities and people will pass to the buyer, and what the examination found.
LearnIntegration plan
How an acquired business is combined with the buyer: the approach chosen, what is kept separate, and who runs each workstream.
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