Approximating Cost Synergies and Target Cost Base from the I/S?
Hi all,
The title says it all. Was wondering if anyone could provide some wisdom as to whether there is a way to calculate cost synergies from a deal by looking at the consolidated income statement. The trick I know is to look at some notes where brokers incorporated deal synergies in revised estimates and see if there's an increase in OpEx and COGS. If brokers revise estimates down for OpEx's, can we usually take the difference as the run-rate cost synergies? Also, can we assume that an increase in COGS is just the target's cost base being incorporated into the acquirer's accounts? This is what I was taught, but is there another way to really do this properly? What if there are no broker notes showing revisions?
Thanks : )
Impedit distinctio temporibus ut libero. Voluptatem sit rerum repudiandae saepe harum enim. Aut sunt consequatur asperiores natus in architecto. Magnam sit et sit totam.
Quis doloremque debitis est quos perspiciatis repellat. Sunt eveniet architecto qui vel. Quis fugit sapiente omnis voluptatibus.
Aut quae velit qui vitae odit eligendi aspernatur. Et rerum magni eaque inventore. Vero tenetur atque eos deserunt dolorem. Itaque sit architecto numquam harum laborum vitae quam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...