Find good companies to invest in.
If only companies were as easy to buy as basic commodities. Then it would be clear where to look for potential candidates. The attributes that distinguish one operation from another would be readily apparent. And you wouldn’t need to convince the target company’s owners and management team that a transaction with you is worth their consideration.
But that’s not how it works with M&A. So it pays to be efficient right from the start. A methodical approach to target identification, based on the principles of corporate strategy, can put you on the path to a successful expansion of your business portfolio.
How we help
After completing more than 600 projects over the years, L.E.K. has built up significant target screening expertise. Among other things, we can help you:
- Evaluate market and geographic segments for untapped business opportunities
- Review and screen relevant markets in detail
- Identify potential targets for acquisition based on existing strategic objectives
- Make initial deal introductions and support early-phase activities
- A larger universe of potential M&A candidates
- Target companies that may not be on the radar of any other acquirer
- Impartial guidance on the profile of an optimal target for your business
Examples of our work
- A leading industrial gases company had developed an offering for biogas production and had asked us to assess the biomethane markets plus potential acquisition targets across a number of European countries. We proposed a two-phased approach that included prioritizing biogas market opportunities by country and proceeding with target screens in selected markets.
- A private equity firm wanted to conduct a market segmentation and target screening analysis in the health and pharmaceutical sectors. We worked with the client to produce analysis that identified market opportunities and potential acquisition targets. The client went on to successfully invest in one of the targets we identified.
- L.E.K. was appointed by the control systems department of a global rail manufacturer to develop a systematic screening of potential acquisition candidates in the signaling market. We defined screening criteria according to the client’s positioning and strategic objectives; then we prioritized potential targets by evaluating companies’ stand-alone attractiveness (sales, products, reputation and financials) and potential fit with the client. Finally, we prepared in-depth profiles of potential acquisition candidates to improve the client’s knowledge of key candidates and support a potential investment decision.