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Last week we looked at statistics around Industrial M&A that cause businesses to fall short of their financial goals. This week we’re jumping into the reasons why – there are seven, and here’s the first one: Overestimation of Synergies: Companies often overestimate the synergies that can be achieved through an M&A investment. This includes cost savings and revenue enhancements that might not materialize as expected. Top 3 Things to Combat Overestimation of Synergies: 1. Seek Expert Insights: As confidentiality allows, gather insights from internal experts and unbiased third-party experts to provide data and insights on market trends, competitors, and technical and operational know-how. This helps form solid, quantifiable baseline assumptions that stand up to scrutiny for each synergy model analyzed. These assumptions, when grounded in reality, will support effective planning and execution. 2. Develop Detailed Tactics: Plan and develop detailed tactics, including activities, deliverables, timelines, and accountabilities to deliver the synergies. 3. Have a Plan B: In the heat of the battle, many fall into the trap of assuming "everything will go flawlessly." Build a robust risk assessment and mitigation plan for each synergy deliverable. There’s more to come next week, but if you’re already thinking you’d like a one-on-one to learn more, send us a message. And visit our website www.chasmbridge.com for an in-depth look at how we can help your company bridge the chasm. #Industrial #BusinessGrowth #Synergy #RiskManagement #MergersAndAcquisitions

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