When our new clients inquire about how we make prioritization decisions with limited data in the world of M&A, our answer is simple and straight-forward – you don’t need all the information as long as you have the CRITICAL information. Consider this process:
• Step #1 – You need “screening” criteria that will help you (and your group) make a decision.
• Step #2 – Find a trial acquisition prospect.
• Step #3 – Gather prospect specific data for the priority criteria.
• Step #4 – Test and refine your criteria.
• Step #5 – Add acquisition prospects and benchmark how they “fit” versus the criteria (and against each other).
Use screening criteria and acknowledge you are not in due diligence so you don’t need everything at this phase of the prospecting process. Evaluate acquisition prospects and SAVE resources by focusing on only gathering the RIGHT information.