Even if an M&A deal could appear accretive, the synergies projected in the model could be too speculative, or there could be too much volatility or risk to the business. There may be other strategic risks that won’t be captured by an Excel model. For example, there could be the risk of reputat...

First Round Second Round Third Round...

First Round Second Round Third Round...

Examples of cost synergies include:...

Examples of revenue synergies include:...

Usually cost synergies are easier to predict because they involve cutting a specific expense. For example, after an acquisition, there is no need for 2 headquarters, so they may shut down one headquarters and save on rent expense. The rent expense would be relatively easy to identify and quantify. R...

Synergies can be classified between revenue synergies and cost synergies. Revenue synergies are benefits from the merger or acquisition that can enhance revenue. They include: Cost synergies are benefits from the merger or acquisition that can lower costs. They include:...

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Prepare a 30 to 60 second M&A pitch which covers the strategic reasons why the acquiror would want to buy the target. It’s great if your idea follows a current industry trend, such as consolidation of a certain sector by larger players, and can point to past successful acquisitions in the spac...

A merger is usually a “merger-of-equals” between two similarly sized companies and it’s presented as more cooperative. An acquisition is usually done in a straightforward way and it’s clear who the acquiror is right away as the acquiror is often materially larger than the target. A stock dea...