When speaking about mergers and acquisitions you often hear the word “synergy” used to explain the rationale of a deal. Here are just a few examples from recent headlines: “The Renault-Nissan carmaking alliance expects to generate 5.5 billion euros ($6 billion) of synergies in 2018.” “[Sysco] said it believed it could achieve $600 million in […]

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In 2013, we saw interesting mergers & acquisitions across multiple industries, ranging from hot tech deals like Yahoo’s $1.1 billion acquisition of Tumblr to the rescue of favorite food brand Twinkies from bankruptcy by Metropolous & Co. and Apollo Global Management. While the potential synergies of the two companies are always laid out, not much is said […]

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Earlier this month, the Association for Corporate Growth hosted a webinar on “Identifying and Achieving Transaction Synergies and Impacts on the Acquisition Price.” One of the takeaways was the gulf between financial and strategic leaders:  “We often see a disconnect between the financial modelers of synergies and the strategic & operational planners, particularly in large […]

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In another installment of our video series, I discuss what “Synergy” really means.  Synergy is a word that gets bandied around a lot in the world of M&A.  When discussing potential deals, companies often try to justify a mediocre deal by talking about all of the synergies that will result.  Really, though there are only […]

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