Insights & News

What buyers want – the six ways to become an acquisition target

INSIGHT: View all Insights articles.

An in-depth study of nearly 34,000 global acquisitions has identified the common predictors that a company will become targeted by investors and trade buyers.

The report by the M&A Research Centre in London found that 12% of private companies become acquisition targets, compared to 4% of public companies.

  • Private companies are more likely to become acquisition targets if they are fast-growing, with high profitability, high leverage and low liquidity.
  • Public companies are more likely to become acquisition targets if they are small, fast-growing, with low profitability, low leverage, low liquidity and low valuations  
  • High leverage and larger size are the two most statistically significant predictors of a private company becoming an acquisition target
  • Small size and low profitability are the two most statistically significant predictors of a public company becoming an acquisition target

Click here to download the report

 

BCMS Author's picture
Posted Oct 2016
by
Share
All BCMS Insights