While many companies become targets for acquisition over time, others maintain their independence for decades. This study examines the characteristics of acquisition targets and whether they can be identified early on as potential candidates for takeover. The first approach focuses on recognizing companies with optimization potential, which is modeled using key performance indicators. Although some typical characteristics of acquisition targets can be demonstrated in an empirical investigation, these differences are not sufficient for early detection. In the German capital market, synergy potential is a more significant motive for acquisitions. A second approach developed in the study provides a conceptual framework for identifying suitable acquisition candidates based on the industry life cycle.