Skill: Evaluate Acquisition Target
Domain
private_equity
Description
Evaluates potential acquisition targets analyzing financial performance, valuation, strategic fit, and integration complexity for M&A decisions.
Tags
M&A, acquisition, due-diligence, valuation, private-equity, investment
Use Cases
- •Target screening
- •Valuation analysis
- •Strategic fit assessment
- •Integration planning
Proprietary Business Rules
Rule 1: Financial Health Score
Multi-factor financial performance assessment.
Rule 2: Valuation Benchmarking
Multiple-based valuation against comparables.
Rule 3: Strategic Alignment
Fit assessment against strategic criteria.
Rule 4: Integration Risk Assessment
Complexity and risk evaluation for integration.
Input Parameters
- •
target_id(string): Target company identifier - •
financials(dict): Target financial statements - •
market_data(dict): Market and industry data - •
strategic_criteria(dict): Acquirer strategic priorities - •
comparable_transactions(list): Recent M&A comparables - •
qualitative_factors(dict): Non-financial factors
Output
- •
overall_score(float): Target attractiveness score - •
valuation_range(dict): Estimated valuation - •
financial_assessment(dict): Financial health analysis - •
strategic_fit(dict): Strategic alignment score - •
integration_risk(dict): Integration complexity assessment - •
recommendation(string): Investment recommendation
Implementation
The evaluation logic is implemented in target_evaluator.py and references data from acquisition_criteria.json.
Usage Example
python
from target_evaluator import evaluate_target
result = evaluate_target(
target_id="TGT-001",
financials={"revenue": 50000000, "ebitda": 8000000, "growth_rate": 0.15},
market_data={"industry": "software", "market_size": 5000000000},
strategic_criteria={"focus_sectors": ["software"], "min_revenue": 25000000},
comparable_transactions=[{"ev_ebitda": 12, "ev_revenue": 4}],
qualitative_factors={"management_quality": "strong", "customer_concentration": 0.20}
)
print(f"Overall Score: {result['overall_score']}")
Test Execution
python
from target_evaluator import evaluate_target
result = evaluate_target(
target_id=input_data.get('target_id'),
financials=input_data.get('financials', {}),
market_data=input_data.get('market_data', {}),
strategic_criteria=input_data.get('strategic_criteria', {}),
comparable_transactions=input_data.get('comparable_transactions', []),
qualitative_factors=input_data.get('qualitative_factors', {})
)