Companies select potential target for acquiring during mergers and acquisitions through a process called target selection. This process typically involves several steps, including:

Defining the company's strategic goals and objectives:
The first step in the target selection process is to define the company's strategic goals and objectives. This typically involves identifying the company's strengths and weaknesses, as well as its growth opportunities and potential threats.

Identifying potential target companies:
Once the company's strategic goals and objectives have been defined, the next step is to identify potential target companies. This may involve conducting market research to identify companies that are operating in the same or similar industry as the acquiring company, or companies that have a complementary product or service offering.

Conducting a preliminary screening:
After a list of potential target companies has been identified, the next step is to conduct a preliminary screening. This typically involves evaluating the financial performance, market position, and management of the potential target companies to determine which ones are the most suitable for the acquiring company.

Conducting due diligence:
Once a potential target company has been identified, the next step is to conduct due diligence. This typically involves a thorough review of the target company's financials, management, operations, and market position to ensure that the acquiring company has a clear understanding of the target company's strengths and weaknesses.

Negotiating the deal:
After due diligence has been completed, the next step is to negotiate the deal. This typically involves negotiating the terms and conditions of the merger or acquisition, including the purchase price, financing, and any contingencies.

Closing the deal:
After the deal has been negotiated, the final step is to close the deal. This typically involves finalizing the legal and financial details of the merger or acquisition and obtaining any necessary approvals from shareholders and regulators.

Hence it is seen that companies select potential target for acquiring during mergers and acquisitions through a process called target selection, which typically involves several steps such as defining the company's strategic goals and objectives, identifying potential target companies, conducting preliminary screening, conducting due diligence, negotiating the deal, and closing the deal. This process involves evaluating the financial performance, market position, and management of potential target companies to determine which one is the most suitable for the acquiring company.

It is also notable that during the selection of the target companies the newly listed companies which have matching similarities of the acquirer easily get targeted. Newly listed firms often become acquisition targets for several reasons.

• Firstly, newly listed firms are often considered to be high-growth companies with a strong potential for future profitability. This makes them attractive to larger, established companies looking to expand their market share and diversify their revenue streams.
   
• Newly listed firms often have a relatively low market capitalization, making them more affordable for potential acquirers. This is especially true for companies that have recently undergone an initial public offering (IPO), as their stock price is typically lower than that of more established companies. This allows potential acquirers to purchase a significant stake in the company at a relatively low cost.
   
• Also, newly listed firms may have a unique product or service offering that is in high demand. This can make them a valuable acquisition target for companies looking to expand their product or service offerings and gain a competitive edge in the market.
   
• Newly listed firms are often considered to be undervalued by the market. This is because their stock price may not yet reflect their true value or potential. This can make them attractive acquisition targets for companies looking to gain a foothold in a particular industry or market segment.
   
• Finally, newly listed firms are often considered to be less risky acquisition targets than more established companies. This is because they have not yet had the opportunity to build a long-term track record of financial performance, making it difficult to predict their future profitability.
   

However, it's worth mentioning that the process of acquiring a newly listed company can be complex and can involve many legal and regulatory challenges. Due diligence is critical for potential acquirers to thoroughly evaluate the target company's financials, management, operations, and market position to ensure a successful acquisition.

There have been several examples of newly listed companies being acquired by big companies in recent history. Some notable examples include:
Zoom Video Communications:
Zoom is a videoconferencing company that went public in April 2019. The company was acquired by Cisco Systems for $4.6 billion in December 2020.

Square:
Square is a financial services and mobile payments company that went public in November 2015. The company was acquired by Visa for $5 billion in March 2021.

Postmates:
Postmates is a food delivery and logistics company that went public in May 2020. The company was acquired by Uber for $2.65 billion in December 2020

Peloton:
Peloton is an interactive fitness platform that went public in September 2019. The company was acquired by ViacomCBS for $1.4 billion in January 2021

Some notable examples happened in India include:
In 2021, Reliance Industries Limited (RIL) announced its plan to acquire a controlling stake in the newly listed e-commerce platform, Jio Platforms Limited, for $65 billion. This acquisition will help RIL expand its digital presence and strengthen its position in the e-commerce market in India.

In 2019, Adani Ports and Special Economic Zone Limited (APSEZ) announced its plan to acquire a controlling stake in the newly listed Krishnapatnam Port Company Limited (KPCL) for $2 billion. This acquisition helped APSEZ to expand its presence in the ports and logistics sector in India.

In 2017, Bharat Petroleum Corporation Limited (BPCL) announced its plan to acquire a controlling stake in the newly listed Numaligarh Refinery Limited (NRL) for $2 billion. This acquisition helped BPCL to expand its presence in the oil and gas sector in India.

In 2015, Vedanta Limited announced its plan to acquire a controlling stake in the newly listed Cairn India Limited for $8.5 billion. This acquisition helped Vedanta to expand its presence in the oil and gas sector in India.

These examples demonstrate that newly listed companies can be an attractive acquisition target for large companies looking to expand their market share and diversify their revenue streams in India. The acquisition of a newly listed company can help the acquiring company to gain access to new technologies, intellectual property, and other valuable assets that can help it to improve its competitiveness.

The newly listed companies can attract the attention of big companies looking for growth opportunities, innovative technologies, and new products and services. In some cases, the newly listed companies were acquired soon after they went public, indicating that the acquirer saw a strong potential in these companies.

In conclusion, newly listed firms often become acquisition targets for several reasons, such as high-growth potential, affordability, unique product or service offerings, and undervaluation. These factors make them attractive to larger, established companies looking to expand their market share and diversify their revenue streams. However, the process of acquiring a newly listed company can be complex and requires thorough due diligence to ensure a successful acquisition.