Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

A study by McKinsey & Co showed that 70% of mergers fall short in achieving their revenue synergy targets and almost 40% face cost synergy disappointments. Occasionally deals end up in dis-synergy. The rationale that two companies together add more value than two separate companies is often negated because of synergy miscalculations. The case study highlights the risk of synergy miscalculations and offers the scope for discussing whether revenue synergies or cost synergies should be benchmarked to rate the success of the merger
Location:
Other setting(s):
2005

About

Abstract

A study by McKinsey & Co showed that 70% of mergers fall short in achieving their revenue synergy targets and almost 40% face cost synergy disappointments. Occasionally deals end up in dis-synergy. The rationale that two companies together add more value than two separate companies is often negated because of synergy miscalculations. The case study highlights the risk of synergy miscalculations and offers the scope for discussing whether revenue synergies or cost synergies should be benchmarked to rate the success of the merger

Settings

Location:
Other setting(s):
2005

Related