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M&A: Who really benefits from synergies?
Synergies are the #1 reason to justify a deal. But 75% end up in the seller's pocket.
Corporate FinanceIntermediateQCM
AgroFrance acquires BioHarvest for €500M.
- BioHarvest standalone value: €350M
- Estimated synergies (PV, net): €200M
- Value with synergies: €550M
- Price paid: €500M (43% premium)
Question 1/3
Management says: "This deal creates €200M of value." How much net value is actually created for AgroFrance shareholders?
0/3
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