CFO Insight LLC
Finance expertise for mid-market companies
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Acquisition Summary

The following pages provide an example of an acquisition summary used to summarize the expected results of an acquisition.  Critical elements of any acquisition include the following:
  1. Executive Sponsor... an executive in the combined firm that will be held personally responsible for the successful completion of the venture.  This includes transition/integration through a planned status.  Note the signature line for the executive to accept responsibility for the investment.
  2. Executive summary is a description of the investment, goals, timing and transition elements.  Examples of items that would be included in the summary might be new product introductions, completion of the integration by a specific year, cash flow commitments, and perhaps earnings per share goals.  Ideally, the summary will address people, process and plant/asset issues.  This will be the roadmap used to guide the Due Diligence, negotiation, and integration process.
  3. Financial highlights of the transaction.  These may vary with every acquisition, but may include sales, cash flow, capital requirements, headcount, earnings per share.  The highlights should include all integration costs initially planned and modifications resulting from Due Diligence review.  Generally the financial highlights should be projected for a 2-3 year horizon, but in certain cases, additional years may be added.  
  4. Notes can be referenced for each line of the financial summary.  These may include brief explanations of some of the major financial highlights - e.g. headcount reduction in force... new data systems installed ... plant upgrade to current standards ... etc.
  5. Critical Success Factors are those few - perhaps up to 5 - deliverables that will determine if the transaction was a success.  These Critical Success Factors may include hard (financial deliverables such as Earnings Per Share...), or soft factors - culture change has been completed... the new company has been fully integrated into the community ... relationships with governmental agencies have been raised to standard.
  6. Transition/integration plan highlights are significant milestones, and related financial impact of major deliverables.  These could include resizing organizations ... new product launches ... realignment of facilities... integration of sales force.... new data systems.  Note that there is opportunity to describe both the P&L and Balance Sheet impact of these milestones.