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DECISION MATRIX — Go / No-Go Framework |
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Weighted scoring model for M&A deal evaluation.
Score each criterion 1-5 (1=Poor, 5=Excellent). Blue values are editable. |
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WEIGHTED SCORING MATRIX |
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DECISION OUTCOME |
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Criterion |
Weight |
Score (1-5) |
Wtd. Score |
Commentary |
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Strategic Fit |
15.0% |
4 |
0.60 |
[Assess alignment with corporate strategy] |
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Overall Weighted Score: |
3.34 |
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Financial Returns (IRR/NPV) |
15.0% |
3 |
0.45 |
[Link to probability-weighted NPV & IRR] |
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Synergy Achievability |
12.0% |
3 |
0.36 |
[Evaluate realism of synergy targets] |
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Recommendation: |
CONDITIONAL GO |
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Market Position Enhancement |
10.0% |
4 |
0.40 |
[Market share / competitive dynamics] |
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Cultural Compatibility |
8.0% |
3 |
0.24 |
[Org culture alignment assessment] |
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SCORING GUIDE |
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Integration Complexity |
8.0% |
2 |
0.16 |
[IT systems, operations, HR integration] |
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4.0 - 5.0 |
STRONG GO |
Proceed with deal |
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Regulatory Risk |
7.0% |
4 |
0.28 |
[Antitrust, sector-specific regulations] |
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3.5 - 3.9 |
GO |
Proceed with caution |
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Management Quality |
6.0% |
3 |
0.18 |
[Retention, depth, succession planning] |
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3.0 - 3.4 |
CONDITIONAL GO |
Negotiate better terms |
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Technology / IP Value |
6.0% |
4 |
0.24 |
[Patents, trade secrets, R&D pipeline] |
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2.5 - 2.9 |
FURTHER REVIEW |
Reassess assumptions |
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Customer Base Quality |
5.0% |
3 |
0.15 |
[Concentration, loyalty, contracts] |
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Below 2.5 |
NO-GO |
Walk away from deal |
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Financing Feasibility |
4.0% |
4 |
0.16 |
[Debt capacity, rating impact] |
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Downside Protection |
4.0% |
3 |
0.12 |
[Asset backing, contractual protections] |
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FINANCIAL HURDLE CHECKS |
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TOTAL |
100.0% |
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3.34 |
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Hurdle |
Result |
Status |
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Weight Check |
OK |
Max Score: |
5.00 |
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Expected NPV > 0 |
$521 |
PASS |
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Score %: |
66.8% |
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Expected IRR > WACC |
-3.9% |
FAIL |
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Expected MOIC > 1.0x |
0.84x |
FAIL |
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Prob. Positive NPV > 50% |
25.0% |
FAIL |
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Note: Score each
criterion 1-5 (blue values). Weights should sum to 100%. Decision thresholds
can be customized. Financial hurdles link to Probability Weighting sheet. |
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Risk/Reward > 1.0x |
2.24x |
PASS |
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Weights Sum = 100% |
100.0% |
PASS |
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Hurdles Passed |
3 of 6 |
REVIEW NEEDED |
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