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Overcoming synergy odds in an M&A deal

A key reason for disappointing deal outcomes is overestimation, which is caused by a lack of clear understanding of the level of synergies merging companies can expect through increased scale.

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Knowing what you hope to achieve is the first step in clearly identifying where the M&A deal can create value, which few things are critical to delivering that value and how quickly you need to move on each.

THE open secret about mergers and acquisitions (M&As) is that most deals fail to generate the synergies companies expect when they announce a merger. In a Bain & Company survey of 352 global executives, overestimating synergies was the second most common reason for disappointing deal

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