M&A – Quantification of synergies
12 May, by
M&A – Quantification of synergies.
I have designed and uploaded a template (free for download/use) to help bidders quantify synergies to be derived from a potential acquisition (target). You can access it at www.cfodesk.com.sg/templates.
In my last blog, I mentioned 8 pitfalls in Mergers & Acquisitions (M&A) activities.
To recap, they are :
- Lack of Corporate Planning for M&A
- Lack of knowledge of extent of M&A deals to fulfil planning objectives.
- Target valuation issues
- Inadequate/misdirected due diligence
- Non-quantification of synergies for subsequent negotiations.
- Overpayment for acquisitions
- Debt/equity funding considerations
- Post-acquisition integration problems
One of the key problems is that most acquirers (bidders) do not quantify the synergies to be derived from the potential acquisition. This makes negotiations difficult as they do not know how much to give in and/or when to walk away.
The main synergies are
- Additional sales, both ways
- Cost & expense savings
- Working capital efficiencies
There are other synergies which may be peculiar or specific to the industry or the deal itself.
Additionally, as mentioned earlier, I shall be designing a 3-part course on M&A which will cover all the 8 pitfalls and how they can be resolved.
Do look out for this deeply enlightening course at http://cfodesk.trainercentralsite.com.
Trust those who are engaged in M&A activities will find this new template useful, and please do share it with your friends and colleagues who may benefit tremendously from applying it. It establishes a roadmap for M&A negotiations.
In the meantime, do enjoy the following 4 e-learning courses to enhance your Accounting & Finance knowledge and skill sets.
- Debits & Credits in Accounting.
Fee: S$20, Duration: 30 mins
- The Framework of Accounting
Fee: $30, Duration: 1 hr 30 mins
- Cashflow Statement Analysis
Fee: $40, Duration: 1 hr 25 mins
- Cashflow Statement Preparation
Fee: $30. Duration: 1 hr 20 mins.
The payment gateways are
- a) CFO Desk’s QRCode (for both local & foreign learners)
- b) PayNow or PayLah (for local/Singapore learners only).
Enjoy your enhanced learning journey!
Michael M Lee
http://cfodesk.TrainerCentralsite.com.
Fri 12 May 2023.
