Inside the Strategy Room
34. A winning formula for deal synergies
Jan 27, 2020
Senior partners Andy West and Jeff Rudnicki from McKinsey's Synergy Lab share surprising insights on capturing synergies in M&A deals, including the importance of protecting the base business, setting specific synergy targets, moving quickly to capture synergies, managing cultural differences during transactions, and the impact of announcing synergies on total returns and deal performance.
35:07
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Quick takeaways
- A specialized team focused solely on synergies is crucial for successful M&A deals.
- Understanding and effectively managing cultural differences is essential for capturing synergies in M&A transactions.
Deep dives
Understanding the Lack of Insight into Value Creation in M&A
The research on deal synergies aims to understand the reasons behind the lack of insight and value creation in M&A transactions. The study debunked myths about deal failure rates and poor returns. It highlighted the challenge of translating the concept of synergy into measurable outcomes and identified the need for a specialized team focused solely on synergies.
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