Acquisitions and mergers are popular ways for U.S. firms to become more competitive, diversified, and resistant to market changes however using these strategies to consistently create value can be challenging. An important part of the process is evaluating targets for acquisition effectively. Items that should be considered are how the acquisition is being financed, the difference in corporate cultures, tax consequences, and other apparent items that require strategies to make blend the two companies. Other criteria include the market position of both companies, operational activities, suppliers and consumers of the company being acquired and the financial position of both firms. When strategizing for a merger or acquisition the acquiring and targeted firms should have complementary resources, due diligence is practiced, acquisition should be friendly, both firms have room in cash or debt capacity, R&D and innovation should be emphasized, and they should be prepared and experienced in adapting to change.
What is your opinion regarding these response above answering the below question. Min 200 words required (remember do not answer the question below provide your opinion regarding the response above )
What do you think are the criteria a firm should use to evaluate targets for acquisition and how should a company plan and undertake its merger acquisition strategic initiatives?