[Shane Bullen]

I’ve noticed that when acquisition business cases are modelled and synergies mapped, the impact of the acquirer’s materially higher overhead structure on a lean, more profitable target is sometimes under‑weighted. Minor structural differences can often be offset through operational efficiencies, but when the gap is significant it should be explicitly factored into the case and integration plan. Otherwise, post‑close margin compression can look like performance deterioration when it’s largely overhead absorption.
Has anyone else encountered this, particularly where a larger firm acquires a smaller one?

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