You need to understand the sources [of M&A revenue synergies], and there are three places we can categorize. One is where you sell. That includes new channels, cross-selling to existing customers, geography expansion. Then there is how you sell. This is where the sales force effectiveness or channel coverage matters. Then there is what you sell. Is the deal bringing new products or new bundles to market? Decomposing where your revenue synergy comes from can often be a great way to provide some structure, and it helps you validate which of these you are more likely to achieve.
Authors: Andy West, Jeff Rudnicki
Source: McKinsey Quarterly
Subject: Mergers & Acquisitions