Assignment:
The company's market position (relative to its competitors)
Business Model (how sound is it?)
An assessment of the company's sources of inputs and finance
Risk management systems/corporate governance mechanisms in place (you may want to compare this with the requirements for listed companies on the London Stock Exchange, available on the Exchange's website)
Financial Performance (look at the liquidity/working capital position, profitability, gearing etc. What can you improve to generate synergy?
Expansion potential
Strong franchise value- this is the best source of growth. Does your target company have one it's probably not maximising?
Management team- poor management team is generally a motivation for takeover. There are ratios to calculate management efficiency.