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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.

Published Wed, Jan 28, 2015 · 09:50 PM

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 outcomes.

One of the causes of this overestimation is w…

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