M&A Synergies

In today’s competitive deal environment, you cannot afford to be wrong about the potential synergy value for a transaction. For the most successful acquirers and/or financial sponsors, synergy assessments begin early in the deal evaluation (sometimes before any significant diligence is started) and are then progressively refined throughout the process, including immediately after the close.

Establishing a strong position on synergies in advance of the deal close is essential for valuation but is equally critical to accelerating the eventual realization of the synergies. Leadership is better able to embed key synergy initiatives directly into early plans for integration and prioritize the pursuit of synergy value in the weeks immediately after a close.  

L.E.K. Consulting has a battle-tested methodology for assessing synergies throughout the deal cycle. We espouse a two-pronged top-down and bottom-up approach that is designed to frame total potential value, progressively refine and revise synergy estimates throughout the process, and clearly define discrete initiatives to ensure feasibility and results.

Top-down targets are set and pressurized using our proprietary synergy database as well as a series of M&A and industry benchmarks. Bottom-up initiatives are developed and progressively refined using our synergy pipeline.