Glossary

With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.

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Investment Analysis

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Category: Mergers and Acquisitions

Definition:

Investment analysis in the context of mergers and acquisitions (M&A) refers to the process of evaluating the financial viability, potential risks, and overall attractiveness of an investment in the context of acquiring or merging with another business. It is a comprehensive examination of the target company’s financial and operational aspects to determine whether the proposed investment aligns with the strategic goals of the acquiring or merging entity. Key components of investment analysis in the context of M&A include financial due diligence, strategic fit, operational due diligence, market and industry analysis, regulatory and legal considerations, valuation analysis, risk assessment and integration planning. Investment analysis is a critical step in the M&A process as it helps the acquiring or merging entity make informed decisions about proceeding with the transaction. The analysis provides a foundation for negotiations, helps in setting a fair acquisition price, and contributes to the development of a post-acquisition integration strategy. The ultimate goal is to ensure that the investment aligns with the acquirer’s strategic objectives and creates long-term value for stakeholders.