Value strategy
Takeover-Target Screening
Screen for likely acquisition candidates — cheap relative to their assets, carrying a clean balance sheet, and small enough for a strategic acquirer or PE fund to digest.
1–3 years — the catalyst is uncertain and may never arriveAdvanced
Event-driven / special-situations screening tradition; formalised academically by Krishna Palepu, “Predicting Takeover Targets” (Journal of Accounting and Economics, 1986)