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Get the Most Out of Your Merger: Key Activities to Achieve Revenue Synergies

Posted By: Miranda Li and Karen Fisman

Get the Most Out of Your Merger: Key Activities to Achieve Revenue Synergies

While M&A transactions are driven by an assortment of reasons, the realization of synergies is omnipresent. An acquirer’s focus, post-merger, is more frequently on cost synergies, as they are more tangible and easier to achieve than revenue synergies. In fact, a recent Mckinsey article Merge to grow: Realizing the full commercial potential of your merger revealed that revenue growth of companies involved in large merger deals tend to decline post-transaction.  And while many companies do expect revenue synergies to comprise a significant component of total deal synergies, less than a quarter report achieving 80% of their target[1].

According to Tim Morton, Managing Partner at Prompta Consulting Group, and an expert on post-merger integration:

“Far too often the M&A focus is on achieving cost synergies, [and] the culture, people, processes and ways of working are often overlooked. It’s paramount for companies to have a clearly planned vision of success to support the achievement of M&A revenue synergies.”

So how to get the most out of your merger? Please click "Open in Browser" to read our full article.

 

[1] According to a Deloitte report on acquisition synergies  

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