This financial synergy valuation model template can be a useful tool for analysts and investors in evaluating a merger and acquisition (M&A) transaction. Normally, during an M&A deal, the investment creates synergies for the acquiring company. This is based on the assumption that the target company owns specialized resources that becomes more valuable after combining with the acquirer's resources. There are two main types of synergies: Operating synergies: Create strategic advantages that generate a higher return on investments and allow more long-term excess returns. Financial synergies: Create tax benefits, higher debt capacity, and diversification of risks. If you’d like to see more examples beyond this financial synergy valuation model template, make sure to check all the Valuation templates on CFI Marketplace.
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