Revenue Synergies for a Successful M&A Strategy

“Companies engage in mergers and acquisitions with the expectation that the merger or acquisition will generate more revenue than the entities would when operating separately. Simply put, they hope the whole will achieve greater results than its parts.”

-Great article on what to expect with revenue synergies for a successful M&A strategy.

This excess revenue generated by the combined company following a merger or acquisition (M&A) is called revenue synergy and it mutually benefits both the target and acquiring companies.

While generating revenue synergies seems simple and viable in theory, synergies depend on many uncertain assumptions. These include cross-selling, market expansion, proper integration, and the introduction of new products. These factors affect how much revenue synergy the combined company can achieve.

Read the full article originally posted on Newswires here: