Reply To: Why do companies struggle with revenue synergies?

#122544

Craig Hasler
Participant

Hi Anirvan,

Thanks for the prompt.

Typically revenue synergies are easiest to obtain when a large multinational corporation is acquiring a much smaller company where they can expand the reach and utilize existing channels to sell more of the acquired solution. For companies that are similar in size and the strategy involves around providing full stack “solutions” instead of “products”, revenue synergies can be planned but in reality are much tougher to execute on. I think revenue synergy planning is an extremely important area to focus on during the due diligence phase as performance in this area can make or break the performance of the overall acquisition (cost synergies are much more well-known).

Interested to hear comments/thoughts from others.

Craig

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