M&A readiness diagnostic

The diagnostic goal

Use the M&A readiness diagnostic to locate the specific conditions behind this question: Is acquisition an appropriate tool for the company's strategy, operating capacity, and currency? The working view makes strategic need, valuation or cash, and leadership visible so discussion can move from general opinion to a specific action or decision.

When to run it

Run the M&A readiness diagnostic before a consequential review or change in finance and company transactions, when symptoms are visible but the underlying condition is still unclear. Repeat it when the evidence for strategic need, valuation or cash, and leadership changes, rather than on a calendar alone.

What it tests

The M&A readiness diagnostic is an evidence-based review that keeps healthy, watch, gap, and unknown states visibly distinct. Its core working elements are strategic need, valuation or cash, leadership, and pipeline. Those elements belong together because each changes how the others should be interpreted or acted on.

Diagnostic dimensions

Strategic need

Define the measure, population, period, source, owner, calculation, baseline, target or reference range, and counterweight. Within the M&A readiness diagnostic, connect this entry to valuation or cash so the relationship can be reviewed rather than inferred.

Valuation or cash

Capture valuation or cash only at the level needed to answer: Is acquisition an appropriate tool for the company's strategy, operating capacity, and currency? Use observable evidence, name any unresolved judgment, and state what action or choice this entry can change. Within the M&A readiness diagnostic, connect this entry to leadership so the relationship can be reviewed rather than inferred.

Leadership

Capture leadership only at the level needed to answer: Is acquisition an appropriate tool for the company's strategy, operating capacity, and currency? Use observable evidence, name any unresolved judgment, and state what action or choice this entry can change. Within the M&A readiness diagnostic, connect this entry to pipeline so the relationship can be reviewed rather than inferred.

Pipeline

Capture pipeline only at the level needed to answer: Is acquisition an appropriate tool for the company's strategy, operating capacity, and currency? Use observable evidence, name any unresolved judgment, and state what action or choice this entry can change. Within the M&A readiness diagnostic, connect this entry to diligence so the relationship can be reviewed rather than inferred.

Diligence

Capture diligence only at the level needed to answer: Is acquisition an appropriate tool for the company's strategy, operating capacity, and currency? Use observable evidence, name any unresolved judgment, and state what action or choice this entry can change. Within the M&A readiness diagnostic, connect this entry to integration so the relationship can be reviewed rather than inferred.

Integration

Capture integration only at the level needed to answer: Is acquisition an appropriate tool for the company's strategy, operating capacity, and currency? Use observable evidence, name any unresolved judgment, and state what action or choice this entry can change. Within the M&A readiness diagnostic, connect this entry to governance so the relationship can be reviewed rather than inferred.

Governance

Capture governance only at the level needed to answer: Is acquisition an appropriate tool for the company's strategy, operating capacity, and currency? Use observable evidence, name any unresolved judgment, and state what action or choice this entry can change. Within the M&A readiness diagnostic, connect this entry to risk so the relationship can be reviewed rather than inferred.

Risk

Describe the cause, possible consequence, early warning signal, owner, and proportionate prevention or response. Within the M&A readiness diagnostic, connect this entry to governance so the relationship can be reviewed rather than inferred.