The Sources of Revenue Synergies in Mergers & Acquisitions

Abstract

Mergers & Acquisitions (M&A) have become in today’s modern business environment an important tool used by companies for achieving the growth and creation the value for shareholders. Creation the synergies in the M&A process is one of the most important reasons that stands at the base of the acquisition decisions of the companies. Many M&A transactions are justified by the amount of projected synergies. In this paper, we propose to clarify the sources of revenue synergies in horizontal mergers. Revenue synergies are, theoretically, developed based on the resource-based theory. Combining complementary resources can help firms gain strategic advantage and increase their revenues. We have tried to answer to the questions like: what kind of complementary resources can be combined by companies for obtaining the revenue synergies; what are the modalities in which the combination of these types of complementary resources can generate revenue synergies.

Keywords

• synergy
• revenue
• acquisition
• company
• resource
• combination
• sales
• value