Strategies for Successful Mergers and Acquisitions

Successful mergers and acquisitions involve transacting to transform, aiming for a broader and more ambitious goal than just a combination of companies. Companies should focus on achieving more together than individually, considering revenue synergies in addition to cost synergies. Acquirers who prioritize revenue synergies over cost synergies are able to pay higher multiples due to realizing more value at lower integration costs. Private equity firms, without the complexity of integration, focus on employing tactical levers like pricing, assessing underlying assets, and launching transformational programs early on to increase value creation.