Hi, what could be the synergies between a big company and a Tech start-up? for instance GM acquiring a start-up that produces softwares for autonomous vehicles.
How would you structure your answer ?
Thank you
Hi there,
In general, I like to break down synergies into Revenue uplift and Cost reduction.
Non-exhaustive examples include:
Revenue Uplift
Cost Reduction
For your GM acquiring Cruise example, well, this is obvious! GM has the brawn i.e. manufacturing/mass-production know-how. Cruise has the brains i.e. the AV R&D/Tech.
As such, GM can pour capital into Cruise, let them do their thing, but constantly coordinate and communicate to translate the tech into actual cars/production techniques.
Tesla is a do-it-all-yourself company. GM has to buy Cruise to compete.
Hello!
It would totally depend on the type of companies, what they do, where they have allocated most of their workfoce (if any), the type of synrgies generated...
Can you give a bit more detail, or even better, give it a shot and publish it here later on so we can help you polish?
Cheers,
Clara
Have a look at this thread for related ideas
Case von