Developing capital investment guidelines for acquisitions.Healthc Financ Manage. 1988 May; 42(5):66-8, 70, 72-4.HF
Financial managers are now being asked to evaluate new investment opportunities, such as acquisitions. To do a thorough evaluation, however, it is important to have a plan of action to follow. Strategies such as establishing a framework for evaluating acquisitions based on strategic compatibility with the existing organization, establishing suitable risk-adjusted discount rates for assessing investments, and selecting the proper type of capital allocation method are all necessary steps to ensure a successful acquisition.