What are the different sources of synergies in M&A?
Revenue synergies
- Access to new markets, geographies and customers
- Ability to cross-sell products
- Vertical integration
- Network effects
Cost synergies
- Economies of scale
- Economies of Scope
- Cost efficiencies across value chain (e.g. consolidation of manufacturing plants, savings in distribution/overlapping channels, eliminating duplicative human resources)
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