Revenue Synergy or Cost Synergy. Which is more important?
In the BIWS M&I 400 questions guide, there is a question under Merger Models "Are revenue or cost synergies more important?". General thoughts?
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Cost synergy is more predictable. I'm pretty sure that's what analysts usually expect you to say.
Got it! Thanks so much!
Cost synergy. You can increase revenues but if you’re margins remain same means you aren’t able to have an operating leverage. Also if capex as a % of Revenues is same, it means your FCF will improve if you have costs synergies. it’s the reason why companies always focus on cost synergies.
loool been a while since I’ve heard talk of the elusive revenue synergy haha
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