How do strategic buyers evaluate acquisition candidates?

Question

Quizplus · Accepted Answer

Strategic buyers typically evaluate acquisition candidates based on the synergies they believe can be created between the target business and their existing operations. This includes potential cost savings, revenue growth, and increased market power. While other factors such as stand-alone potential, employment preservation, and business strategy quality may also be considered, the evaluation of synergies is typically the most important factor for strategic buyers.

How Do Strategic Buyers Evaluate Acquisition Candidates