Dear all, I'd like to hear your experience of evaluating the attractiveness of acquisition targets in a growth strategy project context. How would you analyze the cost/benefit of the target? Except strategic rationales, what other parts would be typically covered? Is IRR/break even analysis typically included?
Just wondering for typical inorganic growth projects, how financial / quantitative and how deep are the evaluation of acquisition targets? Does the simplified analysis conducted in case preps mirror what consultants do in real project? I'm curious whether specific “quantitative analysis (ex: IRR / financial projection / break even period estimation)” are usually conducted, or in practice it is more about “high level analysis (such as top line forecast)”? Taking IRR for example, in real life it would require many resources / details to conduct such an analysis. Thanks for sharing!
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Thanks for the inputs! Actually the main focus of the question is to understand the gap between case preps vs. real life projects. I'm curious whether the methods used in case preps mirror what consultants do in real life.