Why are buyers likely to pursue a limited number of offers out of many potential targets?

Buyers tend to narrow down their options to a limited number of offers because only a few potential targets typically meet their specific criteria. In the M&A process, companies often have strategic goals, financial benchmarks, operational compatibility, and cultural fit that they consider essential when evaluating targets. These criteria can include aspects such as market position, financial performance, growth potential, and synergies.

As a result, even though there may be many potential acquisition candidates, only those that align closely with the buyer's objectives and requirements will be pursued further. This selective approach ensures that the buyer focuses its resources and efforts on the most promising opportunities, thereby increasing the likelihood of a successful transaction that meets their strategic goals.