[Aaron]

This might be provocative, but I feel it is a discussion‑worthy topic.
How honest are we really being about what synergies are achievable, and by when?
Who benefits from optimistic synergy narratives during deal approval?
How should leadership teams deal with missed synergies post‑close without blame?

[Zain]

For the statement – ‘many synergy targets are political commitments, not operational realities’, I would say it depends on the drivers of the acquisition in the first instance, the business ethos of the buyer and the potential readiness of the seller to integrate. I’ve been involved in a government-mandated acquisition (or rather a carve-out) which was imposed on both the sell and buy side as a pre-condition to certain operations.

From a government perspective, they believed this would be a synergy target to capitalize on efficiency in a monopolistic, government backed industry. However for both the buyer and seller, this was anything but that. Operational realities and associated complexities consumed most of the resources and effort that the synergy lens was almost lost mid-way through the transaction. At the end, the transaction was completed. A TSA supported the transition where some degree of deep-engagement in an attempt to capture the synergies did occur but not to the full extent that the government had envisioned.

[Author]

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