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?
Trending Content - Investment Banking Forum
| +374 | Which Offer to Accept: UBS Analyst Role or Part Time Cashier at the Local Taco Bell | 44 | 6h |
| +291 | Roku-Fox Deal - UBS Misses Out on yet another deals after years chasing this deal | 31 | 6h |
| +272 | TPH V.S. Mizuho [HOU] | 33 | 2h |
| +270 | AI is insane | 38 | 2h |
| +268 | I Snuck Into UBS Office And Took A Shit On The Floor | 26 | 9h |
| +220 | Best Power/Renewables/Energy Teams? | 35 | 4h |
| +202 | Useless associates | 36 | 5h |
| +184 | Differences in Restructuring Teams? | 33 | 6h |
| +181 | Centerview HC group falling off? | 28 | 6h |
| +181 | Actual EB List | 26 | 3h |
Career Resources
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
Autem occaecati rerum eos nisi omnis excepturi non. Consequuntur rem dolorem magni velit sequi eum ullam. Earum aut consequuntur doloribus.
In soluta et enim neque eligendi velit odit. Debitis ratione enim dolor sunt rerum. Soluta quia quia impedit rerum id et repellendus. Occaecati voluptatum facilis sed asperiores deserunt. Est quis aut rerum ut.
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...