What are questions that managers should ask before going through with an acquisition?

What will be an ideal response?

The following is a list of questions that managers should ask before integrating a target firm into the parent firm:
1. What is the strategic logic behind this acquisition? Does it correspond with the firm's strategy? Why this
company?
2. Is the target industry attractive? What are the key segments? What is the prognosis about industry evolution?
3. If this is an international acquisition, what are the key differences between this country and our experience? Do
these differences have performance implications?
4. Does an analysis of the target company (products and services, market position, customers, suppliers,
distribution channels, costs, etc.) suggest that it is healthy and viable in the long term?
5. How well does this company fit with ours? What are the expected benefits, and what might impinge on the
realization of those benefits?
6. What integration approach will be necessary (e.g., absorption, preservation, symbiosis, holding company)?
Who will lead this process? How will we be organized?
7. Have alternative scenarios been considered? What is the outcome given reasonable optimistic, baseline, and
pessimistic assumptions?
8. Is the valuation reasonable? What do alternative valuation methods conclude (accounting based, market based,
NPV, option)?