Developing the Acquisition Plan - 1

An acquisition plan is required if the firm decides that an acquisition is needed to implement the firm's business strategy.

The plan delineates key management objectives for the takeover, resource constraints and appropriate strategies for implementing the proposed transaction.

the acquisition plan provides appropriate guidance to those charged with successfully completing the transaction by providing critical inputs into all subsequent phases of the acquisition process.

the acquisition plan defines the criteria, such as size, profitability, industry, and growth rate used to select potential acquisition candidates.

The plan specifies the roles and responsibilities of team members, including outside consultants, and sets the team budget. It indicates management's preference for the form of payment.