Preacquisition
Preacquisition refers to the phase in corporate development that occurs before the formal completion of an acquisition or merger. It encompasses target identification, strategic assessment, and the due diligence and planning activities conducted to determine whether a transaction aligns with the acquirer's objectives and risk tolerance. The term is often used in investment banking, corporate development, and private equity to distinguish initial assessment from post-deal integration.
Key activities include strategic fit analysis, target screening, initial valuation, and the development of deal rationale.
Negotiations typically begin with a letter of intent or term sheet outlining price, conditions, exclusivity, and
The quality of preacquisition work can influence deal certainty and value realization. Failures or gaps in