Capturing synergies to deliver deal value

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The ultimate goal of any merger or acquisition is to create shareholder value.

Successful integrations follow a sequence of coordinated steps to identify, prioritize, execute, and track the drivers of value across the integration continuum. Buyers can take specific steps to more successfully navigate the value capture process by following a well defined, disciplined, and transparent approach to creating value and tracking synergies. The PwC value driver lifecycle helps executives capture synergies and confidently communicate performance to their stakeholders.

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Capturing synergies to deliver deal value

The PwC value driver lifecycle

Rapidly launching integration efforts to capture deal value across the integration continuum, from initial synergy analysis during pre-announcement due diligence to tracking synergy achievements long after the deal closes, is a critical success factor. The PwC value driver lifecycle follows a sequence of coordinated steps to identify, prioritize, execute, and track the drivers of value across the integration continuum. It emphasizes the importance of getting the fundamentals of integration in place as quickly as possible during a deal to minimize disruptions and achieve synergies.

Step 1: Synergy analysis

An initial synergy analysis is generally performed as part of the financial modeling that accompanies most acquisitions during the early stages of target company assessment, long before the deal is announced.

Step 2: Value driver analysis

For the acquiring company, deal announcement often coincides with greater access to target company personnel and the disclosure of information that was previously unavailable.

Step 3: Value driver execution and synergy tracking

If project plans are developed with sufficient detail, then value driver execution can be all about allocating people with the necessary skills to deliver against tasks in accordance with the timelines established.

Contact us

Gregg Nahass

US and Global M&A Integration Leader, PwC US

Derek Townsend

Partner, Deals, PwC US

Barrett Shipman

Principal, PwC US

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