JOURNAL OF ACCOUNTING AND FINANCE
A Framework for Validating an M&A Deal Thesis
Author(s): Stephen G. Morrissette
Citation: Stephen G. Morrissette, (2013) "A Framework for Validating an M&A Deal Thesis," Journal of Accounting and Finance, Vol. 13, Iss. 2, pp. 75 - 86
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper organizes a variety of existing strategy theories, typologies and models into a framework that
can be used to analyze and validate the investment thesis for a proposed acquisition by a strategic or
corporate buyer. One dimension of the framework utilizes the classical models and theories of strategy. A
second dimension applies models that were developed to understand M&A value creation. The third
perspective examines if the acquirer is the best parent for the target firm. A fourth approach is to utilize
tools that “stress test” the investment thesis based on common causes of M&A failure.