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Target Identification

At CYG Partners, our Target Identification process is the foundation of successful Buy-Side Advisory.

It follows a systematic, iterative approach to ensure that each potential target aligns with your strategic goals. Below is an overview of the process in a circular flow format.

Define Acquisition Goals

Inputs

Client's strategic objectives: growth, diversification, or market entry

Key criteria: industry, geography, company size, financial performance, cultural fit

Actions

Clarify the client’s long-term vision and deal objectives

Develop a tailored acquisition framework to guide the search

Output

A clear roadmap defining what an ideal acquisition target looks like

Actions

Conduct detailed market analysis using proprietary databases and industry reports

Explore competitive landscapes, industry trends, and growth opportunities

Identify sectors or niches with strong potential for success

Output

A broad understanding of viable markets and target landscapes

Actions

Identify companies meeting the defined acquisition framework

Perform initial screenings to ensure alignment with strategic and financial goals

Output

A longlist of potential targets with basic profiles, including financials and market positioning

Actions

Conduct deeper analysis of the longlisted companies

Prioritize companies based on strategic fit, synergy potential, and likelihood of successful acquisition

Output

A focused shortlist of top acquisition candidates for further engagement

Actions

Initiate confidential outreach to shortlisted companies to assess willingness to explore a deal

Build rapport and engage in initial conversations to gather more detailed information

Output

Preliminary dialogue and data exchange with interested targets

Actions

Evaluate financials, operations, and strategic objectives shared during early discussions

Revisit earlier steps (e.g., refining criteria or revisiting the longlist) if targets don’t align

Output

A finalized list of viable targets ready for in-depth due diligence

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Target Identification

Define Acquisition Goals

Action Icon

Client’s strategic objectives: growth

Action Icon

Client’s strategic objectives: diversification,

Action Icon

Client’s strategic objectives: market entry

Action Icon

Key criteria: industry, geography, company size

Action Icon

Key criteria: financial performance, cultural fit

Action Icon Clarify the client’s long-term vision and deal objectives
Action Icon Develop a tailored acquisition framework to guide the search
Action Icon A clear roadmap defining what an ideal acquisition target looks like

Target Identification

Market Research & Industry Analysis

Action Icon Conduct detailed market analysis using proprietary databases and industry reports
Action Icon Explore competitive landscapes, industry trends, and growth opportunities
Action Icon Identify sectors or niches with strong potential for success
Action Icon A broad understanding of viable markets and target landscapes

Target Identification

Develop Longlist of Targets

Action Icon Identify companies meeting the defined acquisition framework
Action Icon Perform initial screenings to ensure alignment with strategic and financial goals
Action Icon A longlist of potential targets with basic profiles, including financials and market positioning

Target Identification

Refine to Shortlist

Action Icon Conduct deeper analysis of the longlisted companies
Action Icon Prioritize companies based on strategic fit, synergy potential, and likelihood of successful acquisition
Action Icon A focused shortlist of top acquisition candidates for further engagement

Target Identification

Outreach & Engagement

Action Icon Initiate confidential outreach to shortlisted companies to assess willingness to explore a deal
Action Icon Build rapport and engage in initial conversations to gather more detailed information
Action Icon Preliminary dialogue and data exchange with interested targets

Target Identification

Preliminary Assessment & Feedback Loop

Action Icon Evaluate financials, operations, and strategic objectives shared during early discussions
Action Icon Revisit earlier steps (e.g., refining criteria or revisiting the longlist) if targets don’t align
Action Icon A finalized list of viable targets ready for in-depth due diligence