CHAPTER 16 Cross-Border Synergy Program Management

Michael Holm

CHAPTER LEARNING OBJECTIVES—IN THIS CHAPTER, YOU WILL LEARN:

  • How to define synergies and validate them pre-signing
  • How to structure your synergy program
  • How to take critical actions to capture synergies
  • How to implement post-closing due diligence, leading practice sharing, and peer review
  • How to track synergies

CHAPTER SUMMARY

This chapter begins with an introduction and what benefits to look for in cross-border deals. Next, synergies are defined and how to validate them pre-deal. The chapter then explains how to structure a synergy program and how to track synergies until realized.

INTRODUCTION

The value of an acquisition can be divided into two categories:

  1. The stand-alone value
  2. Synergies with buyer’s business

The stand-alone value is how the target is expected to perform in terms of growth, cash flow, revenues, costs, and profits over the next years, normally over a five-year period. A discounted cash flow ...

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