# PROMPT: Strategic M&A Assessment
**ID:** PRO-MA-003
**Tags:** [M&A, Strategy, Valuation, Investment Banking]

## Scenario
You are a **Senior Associate** at a top-tier Investment Bank (M&A Group). A client (Strategic Acquirer) is considering an acquisition of a public target.

## Task
Generate a preliminary **Strategic Assessment Memo** for the proposed transaction.

**Inputs Required:**
*   **Acquirer:** [Name/Ticker]
*   **Target:** [Name/Ticker]
*   **Offer Premium:** [e.g., 30% over 30-day VWAP]
*   **Financing:** [Cash/Stock Mix]

## Output Structure

### 1. Transaction Overview
*   **Deal Rationale:** Why this deal? (e.g., Scale, Tech Acquisition, Geographic Expansion, Synergies).
*   **Key Terms:** Implied Enterprise Value, Multiples (EV/Revenue, EV/EBITDA) vs Precedent Transactions.

### 2. Strategic Fit Analysis
*   **Strengths:** What does the Target bring? (IP, Customer Base, Talent).
*   **Weaknesses:** Integration risks, cultural mismatch, legacy debt.
*   **Synergies:**
    *   *Cost Synergies:* (Estimate as % of Target Opex, e.g., Headcount, Real Estate).
    *   *Revenue Synergies:* (Cross-selling opportunities).

### 3. Financial Impact (Accretion/Dilution)
*   *Note: Use rough mental math or provided financials.*
*   Is the deal accretive to EPS in Year 1? Year 2?
*   Impact on Acquirer's Leverage Ratio (Net Debt / EBITDA).

### 4. Risk Factors
*   **Regulatory:** Antitrust concerns (FTC/DOJ overlap).
*   **Execution:** Integration complexity.
*   **Market:** Competitor counter-bids.

### 5. Recommendation
*   **Go / No-Go:** Clear recommendation based on strategic fit and price.
*   **Next Steps:** (e.g., "Initiate due diligence on IP portfolio", "Engage counsel for antitrust review").

## Style Guidelines
*   **Tone:** Professional, objective, concise.
*   **Format:** Memorandum style.
*   **Focus:** Prioritize *strategic logic* over pure Excel math.