1. Chemistry – strong personal chemistry between the two parties when they meet for the first time. If they can’t get along now, it is unlikely they will be able to work effectively together under the strains of a commercial relationship.
2. Culture – the two businesses should have a compatible culture. This is often defined in different ways, but simply put you could say ‘it’s the way we do things around here’.
3. Proposition – the two businesses together should be able to create a powerful business proposition post-deal. A lot of time is dedicated to working out what this might be.