Identifying the Potential for Adding Value

Since the success of a merger is ultimately measured in terms of the value it generates, synergies that were estimated in broad outlines when the merger was planned have to be specified in detail when both parties suddenly start playing with totally open cards. Two questions in particular must be addressed when formulating overall goals  

Will the synergies that emerge be sufficient to meet the financial markets expectations  

Are all the possibilities for adding value being taken into account  

The overall goal can be derived in one of two ways it can either be based on the estimates from the due diligence - a top-down goal set by the companies management - or it can be built from the bottom up by the individual project teams. A pure example of either case is very rare in practice usually, a weak form of the top-down variety prevails, in which the compan/s management formulates objectives in cooperation with the relevant project staff. 

The potential for adding value can be sought in two main areas the business itself, and the new leadership and management systems. The directly business-related potential is likely to come from the following actions  

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