Originally published: 15/04/2016 08:09
Last version published: 03/04/2017 10:29
Publication number: ELQ-96852-5

Acquisition Synergies

Communicate the main synergies between your group and a company you are considering for a potential acquisition

by WMI Consulting
Development, Growth & Operational Strategy Consulting Firm

by Antoine Duboscq
CEO of adVentures

by Sophie Guignier
Deputy Director #MBADMB EFAP | Strategy consulting & marketing @AdVentures Startup Studio (incl. Wimi)

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Description
The slide aims at showing the 4 or 5 main areas of synergies that you identified during your study of a company your group might potentially acquire. Its graphic layout allows an overview of the relative strength of synergies to be expected for each topic. Moreover the layout of the slide allows you to show additional significant details that can justify your point and allow you to convey some results of your synergies analysis both in terms of strategy and in terms of financials.

This Best Practice includes
1 PowerPoint Slide, 1 Online Method

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Objectives

Communicate the main areas of synergy between your group and the target company simply and graphically. The objective is to see on just one page the pre-eminent topics on which you can expect synergies. Without digging into too much detail you give a first estimation of the expected gains in case of acquisition.
• Enable a quick understanding of the level of synergies to be expected in case of acquisition
• Create a valuable hand-out for discussion and decision making
• Communicate the results of your research in a clear and comprehensible format
• Communicate crucial estimates and strategic orientations to be taken into account
• Subtly let your conclusion be known on the matter of the merger

Insert in:
• Due diligence
• Strategic plan
• Business plan
• Investors presentations

Main sources:
• Management and professional interviews
• Existing reliable market studies (Markess, Xerfi, Reuters, MarketResearch, HBR…)
• Business press and actors' publications: press releases, corporate websites contents...
• Your own knowledge of your and your target's business and market
• Your own vision and strategy

Use it if

• You need an efficient decision-making aid for your acquisition plans
• You want to summarize the synergies between your group and a potential target
• You need to convey some strategy related facts and figures regarding a potential acquisition
• You want to qualify and quantify the strength of the synergies

Don't use it if

• You want to describe the 2 businesses or their skills at length
• You do not wish to communicate key figures or evaluate the strength of your synergies
• You'd rather list skills without going into great details
• You would also like to show where you would lack skills and know-how in your acquisition