Search for Acquisition Candidates - 1

To start the search for acquisition candidates, the search team or the manager must have preset primary screening or selection criteria. At the initial stage the criteria can be a small number. They include the industry, size of transaction,some valuation criteria like P/E, or P/B multiples.

The search team may go through various databases and director services like Dun and Bradstreet, Standard and Poors, Thomas' Register and Million Dollar Directory to identify potential targets.

The search team can contact firm's law, banking and accounting firms.

Investment banks, M&A brokers and leveraged buyout firms are fertise sources of candidates. But they may require an advisory or finder's fee.

Some firms do advertise its interest in acquiring a particular type of firm in various businss dailies and periodicals.