Identifying Common Green Flags in M&A Case Studies

As most case studies revolve around M&A scenarios, you will be expected to spot both green flags (i.e. positive factors that point to the proposed deal being a good idea) and red flags (i.e. adverse factors that suggest the proposed deal should be approached with caution or aborted altogether).

Most case studies throw up similar green and red flags, and this article provides a low-down of the most common green flags indicating a proposed M&A transaction to be good for the buyer. In real life, these green flags need to verified through due diligence and the buyer would be wise not to take publicly-available information or the seller/target at their word. In a case study scenario, you will be expected to dig deep into the document pack to verify and substantiate what you believe to be a green flag.

You may want to use this article as a mental tick-list during your case studies to ensure that you aren’t missing positive indicators!