When it comes to properly valuing targets, estimates of the synergy potential and of the cost and timing to achieve it, are of the utmost importance. (That’s especially true for corporate acquirers.) Synergy potential often determines the winning bidder in an auction process. Despite its importance, synergy is not easy to quantify; doing so calls for deep industry insights, rigorous analysis and experience in post-merger integration.
BCG has created its Synergy Database to enable clients to effectively assess M&A synergies and set targets. The database comprises “industry packs” that provide common benchmark data; each pack includes a few vignettes per industry, with further detail about the context and synergies of selected deals. Roughly 100 of the deals described are those that BCG has supported; another 80 are public deals.