Track Deal Synergy through MergerWare
Synergy stages throughout the process
What is Synergy :
Value created or released by the combination of two companies above and beyond what each company could reach on a standalone basis
Benefits descriptions
- Track, follow up revenue & cost synergies and implementation costs by initiative – focus on EBIT
- Schedule and track synergy milestones
- Give visibility on the different synergy streams and to relevant owners
- Identify and manage risks and roadblocks on a timely basis
- Validate initiatives and figures against the P&L
- Challenge and compare initiative – Actual versus Target
- Consolidate (including exchange rate effect) all initiatives to a global overview – to enable reporting to forums such as the Corporate M&A and executive management team.
Track your Cost & Revenue Synergy
General rules for synergy quantification
- Baseline preparation
- Formula to calculate EBIT impact
- cost of Implementation
- Operational KPIs to track synergies
Key Points to remember :
- Cost of implementation (or negative synergies)must be taken into consideration in the synergy reporting
- Synergies targets must be set on a yearly basis and visible in the P&L of origin validated by CFO