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
| +157 | Think Twice before Recruiting for HOUSTON IB!! | 65 | 2d |
| +152 | Investment Banks Ranked By Your Divorced Blue Collared Uncle | 15 | 10h |
| +132 | UBS Exits 2026 | 37 | 53m |
| +50 | How cooked am I as an incoming WF IB SA 2027? | 17 | 5d |
| +49 | Congrats on the ROs. I Still Don’t Know Which One You Were | 5 | 23m |
| +40 | Mid-Level UBS Departure for another BB (Grass Isn’t Greener…) | 31 | 3d |
| +37 | IB RO Discussion | 6 | 3d |
| +36 | Did not get a return offer due to headcount, but happy to move on. | 8 | 10h |
| +32 | GS - Low Bonus | 23 | 16h |
| +28 | Early VP promo timeline | 15 | 1d |
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
Dolor id alias debitis quos. Ab molestiae maiores iusto vero. Quibusdam est quis repellendus exercitationem. Corrupti quae dolore quisquam consequatur. Ad explicabo suscipit laborum ut.
Possimus aut illo dicta est aut. Amet eum tempore pariatur qui minus inventore. Omnis vero molestiae nihil voluptas omnis officia.
Quia voluptas sint sed provident dolore voluptas. Similique et ab eius non. Et facere natus reiciendis non corporis aut et.
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...