Deals
Market, target, value, risk
Last reviewedWhat is Market, target, value, risk?
Four questions for an acquisition: is the market attractive, is the target a strong business, what is it worth to us (including synergies, compared with the price), and what are the risks, including integration.
When should you use Market, target, value, risk?
Mergers, acquisitions and private-equity due diligence.
What are its limits?
Synergies are often overestimated and cost money to achieve, so treat them as claims to test, not facts.
How do you tailor it to a case?
Separate the target's standalone value from synergies, and check whether the deal works without the synergies.
Use a framework as a source of ideas, then put a structure built for this specific problem on the table. Reciting a framework by name is a common way to lose marks.