How realistic to achieve the synergy target set before the deal?

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  • #81773
    Kohei
    Participant

    I have managed M&A projects in my company, and although we have been successfully closed deals in many cases, we have not been able to achieve the target we set before deals. I would like to know if there is anyone who could really integrate the business of targets very well, which allowed your company to realize more synergies than planned in the business plan before deals.

    #81778
    Frederik DW
    Participant

    Achieving the targets will largely depend on:

    – how ‘realistic’ the targets are
    – the integration efforts required to achieve the targets.

    What worked well was a compelling dashboard clearly stating the top 3 key synergy targets / KPI’s to have everyone aligned on the goals.

    #82530
    Bernardo Lima
    Participant

    In some cases the team which is responsible for estimating the synergies is not the same team who is responsible for capturing the estimated synergies.

    #83370
    Ziad Debbas
    Participant

    For larger transactions, i strongly recommend to involve a specialist consulting firm to support PMI to rapidly help the company capture merger synergies. Ideally the consultant should have been involved in the Due Diligence process, particularly on operational, HR and commercial aspects and help measure the value of synergies. Structuring the consultants’ fees largely as a % of the value created of those synergies within a reasonable time frame helps align interest and drive results.

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