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Strategy - Mergers & Acquisitions

 

 
What Shape is Your Curve? Curves are magnificent things. Mergers have curves too. Synergy curves. They reveal the measure of attractiveness of the deal, either up front as part of a due diligence exercise or when evaluating the deal's ultimate success.

For mergers, there is a window of opportunity for capturing the most benefits. A synergy curve defines this window and, ultimately, the success or failure of a merger. The result of months of preparation, planning, and implementation, the curve shows the accumulation of synergies over time. In successful mergers synergy curves are defined in the early stages and used as a driving force for the integration. A merger with a sense of urgency is far more likely to reach its full potential and by plotting a synergy curve during the planning of the merger senior executives can see the speed at which synergies could be delivered and track the planned accumulation of synergies over time. Plotting a curve also helps clarify the deal's strategic rationale, fundamental to maximizing synergy delivery. As the deal progresses through announcement and toward close, the curve's accuracy can be refined as more data is made available.

 

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Status: 14. Mai 2013