[header] How to analyze an acquisition [title] Ask for audited financial statements. [step] The target should be willing to hand over audited financial statements for the past five years. If the company is publicly traded, it should file financial statements with the securities and exchange commission (sec). 
They file 10-k statements each year and 10-q statements quarterly, which you can obtain online at the edgar website. [substeps] If the company is private, you still want their audited financial statements.