An Overview of Acquisitional Development: Planning, Candidate Selection and Evaluation

Date of Submission


Document Type


Degree Name

Master of Science in Accounting




Michael J. Rolleri


Consolidation and merger corporations

Call No. at the Univ. of New Haven Library

AS 36 .N29 Acc. 1986 no.5


This paper is an attempt to examine the essential elements involved in the acquisition process from the standpoint of the acquiring firm. It is not the intent of this paper to cover all the areas of the acquisition process; rather, it tries to recognize the major points of the early planning stages through the valuation of the candidate. It then continues into some areas which may not necessarily be steps in the acquisition process, but are of concern nonetheless.

The structure of this paper addresses a framework through which a properly planned acquisition takes place. Therefore, it does not consider hostile takeovers, stock bidding wars or the speculative buying of a corporation's stock. The intent is to exhibit a pragmatic approach toward the development of a mutually compatible corporate marriage.

Certain areas of this paper are quite detailed while others are not. It is therefore not intended that this study be considered a complete analytical tool to be used in an acquisition. Because of industrial differences, business customs and the very nature of acquisitions themselves, it would be impossible to cover every situation which may arise. Each acquisition analysis must be tailored to reflect these items. In addition, technical areas such as taxation, antitrust and other regulatory matters can become quite complex, and professionals of their respective disciplines must be consulted when contemplating an acquisition.

The words "acquiror" and "acquiree" are sometimes used in the body of this paper. The "acquiror" is the firm that is looking to buy or secure another company, while the "acquiree" is the "target," or the firm being purchased.