It is critical for the deal to make financial sense.
Reducing your costs and overheads – through shared marketing budgets, increased purchasing power and lower costs.
Reducing competition – buying up new intellectual property, products or services may be cheaper than developing these yourself.
Accessing funds or valuable assets for new development – better production or distribution facilities are often less expensive to buy than to build. Look for target businesses that are only marginally profitable and have large unused capacity which can be bought at a small premium to net asset value.