Deal Synergies – Some Considerations

Article Excerpt:

Part of any deal analysis includes the impact of synergies which, many times, becomes the prevailing reason to complete the deal in the first place. Although determining and executing synergies are such critical parts of the process, oftentimes things do not go as planned, and the full potential of the deal is not realized.

Sometimes things are out of your control and there isn’t much you can do. That may be the case regardless of transaction size or industry. But, there are also many things in your control and, with proper planning and execution, you can maximize the results of an acquisition. There are some basic elements of a well-defined, disciplined and transparent approach to synergies. These include modeling, executing and tracking synergies. However, at each of these stages, there are challenges you may need to address.