The Synergy Solution: How Companies Win the Mergers & Acquisitions Game
— March 15, 2022
By Mark Sirower
“The Synergy Solution: How Companies Win the Mergers & Acquisitions Game” is authored by Professor Mark Sirower, a leader in the M&A and Restructuring practice, Deloitte, who has taught in NYU Stern’s Executive MBA Program for 30 years, and co-author Jeff Weirens, leader, Global Financial Advisory, Deloitte. The book is a comprehensive up-to-date resource for doing M&A right—providing end-to-end solutions for every step from strategy to valuation, all the way through post-close execution.
The upshot: M&A is a connected cascade of judgments and actions that must be managed phase by phase. If it isn’t, the original vision for a deal may never materialize.
The recommendations in “The Synergy Solution” are supported by an original study of over one thousand deals spanning 24 years (and worth over $5 trillion in deal value). Among the findings: cash deals outperform stock deals; high premiums often mean disappointing returns; and initial market reactions are great indicators of long-term success. More importantly, there are great rewards for acquirers who begin with a positive market reaction and deliver on their promises—returns of 60 percentage points higher than acquirers who start with a negative reaction and confirm those negative investor forecasts.
Five key M&A tactics from the book apply these findings to teach readers how to:
- Design an always-on M&A strategy that creates a continuous pipeline of priority deals
- Test the investment thesis and discounted cash flow valuation before making an offer
- Effectively communicate promises to win in the eyes of stakeholders
- Prioritize the pre-close integration and post-close execution phases
- Manage change and build a fully new, combined business that creates shareholder value