M&A synergies

Hi there,

The list you provide is great - definitely adequate.

That said, your question isn't really about synergies, but about speaking concisely.

Never estimate the power of the "for example". What does this look like? Well, in your case...

"I see a number of cost reduction opportunites, for example/specifically, along procurement negotiations, production optimisation through process streamlining and factory consolidation, increased sales distribution efficiency, and consolidation/trimming down of sales teams"

Now, that didn't take to long did it?

(edited)

Hey,

You need to be clear on following aspects before you think of a framework and solution:

• Are you looking at cost savings/revenue synergies once the two firms have merged?
• or is your question about evaluating synergies to make a decision on go/no-go for M&A or for integration once the M&A is done?

Cost Saving & Revenue synergies

• Complementary products/services
• Supply chain synergies
• Shared IT
• People synergies (from CEO to ground staff)
• Scale efficiencies/Capital

Evaluating synergies for go/no-go

• Financial analysis
• Customer segments
• Product/Service mix
• Supply Chain

Integration

• Processes
• People
• IT stack

Pick out the most relevant ones depending on the case and elaborate on key points. No need to drill too much per area..1 or 2 examples are good enough. Keep your overall structure to 3-4 branches.

(edited)

Hello!

I would for sure mention in the tree that there are significant cost symergies, and then introduce with a "for example" the different buckets that you have very well listed in the prompt.

This said, careful, since M&A is one of the caes in which there is most richness and details outside the purely "economic" side of the case.

Hope it helps!

Cheers,

Clara

For McKinsey cases in particular the more specific you are and clear about the why the better your structure will be percieved. I like the level of detail you have.

One point to note - be very careful about cost synergies and revenue synergies. Sales best practices is usually revenue related so do not talk about it under cost, you will lose points for that.

Best,

Udayan

Hi, I would present them with a top-down way, identifying 3 main areas to group every bullet

Best,
Antonello