Revenue Synergies In Acquisitions.

Finding the holy grail of deal synergies

Although mergers and acquisitions (M&A) deals are fueled by anticipations of revenue growth, successful revenue synergy capture continues to remain elusive. We surveyed more than 300 executives from both large and small public and private companies to find out what it takes to be successful.

Acquisition synergies report

 

Revenue synergies are expected to play a huge role in achieving overall deal synergy. In fact, more than half of all deal synergies are anticipated to come from revenues.

Meanwhile, though, less than a quarter of acquirers report actually achieving 80 percent of their revenue synergy targets. Some do, of course. What's the secret to their success? What sets the "leaders" apart from the "laggards"? In our latest survey, we dive into the details of revenue synergy strategies to find some answers.

 

Critical success factors

 

In addition to insights gleaned from the survey, this report draws from the collective experiences of our own M&A practice to identify five specific actions that M&A leaders can put to work in order to reach their revenue synergy targets.

 

1. Pursue the low-hanging fruit

  • Align around cross-selling and channels
  • Enforce efficient decision making on goals, mindful of operating model implications

 

2. Cast a wide net

  • Pursue multiple types of synergy initiatives to increase chances of success
  • Lead change management activities across both organizations
  • Enlist customers, partners, and other key stakeholders in guiding and informing key decisions

 

3. Lead with innovation

  • Invest ambitiously in growth opportunities with long-term potential
  • Balance near-term and long-term synergy initiatives
  • Lay the foundation for go-to-market transformation

 

4. Dig into the data details

  • Use quality data to drive analytics-driven insights
  • Establish and empower a dedicated integration team
  • Budget for success and incentivize teams

 

5. Plan the work, work the plan

  • Plan for pre-close synergy and clean room activities
  • Activate integration teams with commercial analytics capabilities
  • Remain focused on targets

 

Please click here to download the full report