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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.

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