{"id":20869,"date":"2021-07-23T16:02:53","date_gmt":"2021-07-23T21:02:53","guid":{"rendered":"https:\/\/breakingintowallstreet.com\/biws\/?post_type=biws_kb&#038;p=20869"},"modified":"2024-09-11T07:04:58","modified_gmt":"2024-09-11T12:04:58","slug":"cost-synergies","status":"publish","type":"biws_kb","link":"https:\/\/breakingintowallstreet.com\/kb\/ma-and-merger-models\/cost-synergies\/","title":{"rendered":"Cost Synergies in M&#038;A Deals and Merger Models: Full Tutorial and Sample Excel Model"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-flat ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Cost Synergies in M&amp;A Deals and Merger Models<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/breakingintowallstreet.com\/kb\/ma-and-merger-models\/cost-synergies\/#What_Are_Synergies_and_Why_Do_They_Matter_in_M_A_Deals\">What Are Synergies, and Why Do They Matter in M&amp;A Deals?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/breakingintowallstreet.com\/kb\/ma-and-merger-models\/cost-synergies\/#Cost_Synergies_101_Got_Realism\">Cost Synergies 101: Got Realism?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/breakingintowallstreet.com\/kb\/ma-and-merger-models\/cost-synergies\/#How_to_Estimate_Cost_Synergies_in_Merger_Models\">How to Estimate Cost Synergies in Merger Models<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/breakingintowallstreet.com\/kb\/ma-and-merger-models\/cost-synergies\/#The_Realistic_Impact_of_Cost_Synergies\">The Realistic Impact of Cost Synergies<\/a><\/li><\/ul><\/nav><\/div>\n\n<blockquote><p><strong>Cost Synergies Definition:<\/strong> In mergers and acquisitions, <strong>Cost Synergies<\/strong> refer to cases in which the <em>combined company\u2019s expenses<\/em> are less than the Buyer\u2019s expenses plus the Seller\u2019s expenses due to a reduction in the employee count, more favorable supplier contracts, consolidated buildings, and other initiatives.<\/p><\/blockquote>\n<p>People often argue for mergers and acquisitions because of \u201csynergies\u201d \u2013 but they rarely take the time to understand what this term means and the implications in <a href=\"https:\/\/www.mergersandinquisitions.com\/financial-modeling\/\" target=\"_blank\" rel=\"noopener\">financial models<\/a>.<\/p>\n<p>We\u2019ll focus on <strong>Cost Synergies<\/strong> in this article, but let\u2019s start by explaining <em>all<\/em> types of synergies:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Synergies_and_Why_Do_They_Matter_in_M_A_Deals\"><\/span><strong>What Are Synergies, and Why Do They Matter in M&amp;A Deals?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Put simply, <strong>synergies<\/strong> are cases in which 1 + 1 = 3 in mergers and acquisitions.<\/p>\n<p>For example, the Buyer has Revenue of $100, and the Seller has Revenue of $50.<\/p>\n<p>But as a combined company, the Total Revenue is $175 rather than $150 because:<\/p>\n<ul>\n<li>The Buyer can sell more products to the Seller\u2019s customers, or vice versa.<\/li>\n<li>The Buyer can add features from the Seller\u2019s technology to its products and services, and customers are now willing to pay more.<\/li>\n<li>The Seller can use the Buyer\u2019s larger distribution network and geographic presence to sell its products to new customers.<\/li>\n<\/ul>\n<div class='code-block code-block-2' style='margin: 8px 0; clear: both;'>\n<div class=\"kb-adinsert-modal\">\n    <div class=\"kb-adinsert-top\">\n      <div class=\"media\">\n          <img decoding=\"async\" class=\"alignnone size-full wp-image-28448\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2024\/04\/24164120\/adv-fm-tile.png\" alt=\"PowerPoint Pro\" width=\"128\" height=\"128\" \/>\n      <\/div>\n      <div class=\"content\">\n          <h3>Master Financial Modeling for Investment Banking With <strong>BIWS Core Financial Modeling<\/strong><\/h3>\n      <\/div>\n    <\/div>\n    \n    <div class=\"full_text\">\n    \t<ul>\n        \t<li>\n            \t<h4>Become a financial modeling pro<\/h4>\n              <p>158 videos, detailed written guides, Excel files, quizzes, and more<\/p>\n\t\t\t    <\/li>\n          <li>\n          \t<h4>Complete 10+ detailed global case studies<\/h4>\n            <p>These include both the theory and the practical applications<\/p>\n\t\t\t    <\/li>\n          <li>\n          \t<h4>Prepare for your internship or full-time job<\/h4>\n            <p>Gain the skills you need to \u201chit the ground running\u201d on Day 1\n\n<\/p>\n\t\t\t  <\/li>\n      <\/ul>\n        \n      <a class=\"cta-link orange-button-medium\" href=\"https:\/\/breakingintowallstreet.com\/core-financial-modeling\/\" target=\"_blank\">Full Details<\/a>\n      \n      <a class=\"cta-link orange-button-medium bg-blue\" href=\"https:\/\/biws-support.s3.us-east-1.amazonaws.com\/Course-Outlines\/Core-Financial-Modeling-Course-Outline.pdf\" target=\"_blank\" rel=\"noopener\">Short Outline<\/a>\n    <\/div>\n<\/div><\/div>\n\n<p>These examples all refer to <strong>Revenue Synergies<\/strong>, and in real life, they might look like this in a <a href=\"https:\/\/breakingintowallstreet.com\/kb\/ma-and-merger-models\/merger-model-walkthrough\/\" target=\"_blank\" rel=\"noopener\">merger model<\/a>:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-23803 size-full\" title=\"Revenue Synergies in Merger Models\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075114\/01-Revenue-Synergies-Merger-Model.jpg\" alt=\"Revenue Synergies in Merger Models\" width=\"847\" height=\"410\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075114\/01-Revenue-Synergies-Merger-Model.jpg 847w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075114\/01-Revenue-Synergies-Merger-Model-300x145.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075114\/01-Revenue-Synergies-Merger-Model-768x372.jpg 768w\" sizes=\"(max-width: 847px) 100vw, 847px\" \/><\/p>\n<p>In this case, we\u2019ve assumed that the Seller \u2013 BMC Stock Holdings \u2013 will be able to sell more lumber, windows, doors, and millwork because of its acquisition by Builders FirstSource, a larger company in the building materials industry.<\/p>\n<p>We modeled these Revenue Synergies as simple percentage increases in sales within these segments, along with corresponding increases in the Cost of Sales and Operating Expenses (there\u2019s no such thing as a free lunch!).<\/p>\n<p><strong>Synergies<\/strong> matter in M&amp;A deals because Buyers tend to pay <strong>premiums<\/strong> for Sellers, and if the market fairly values a Seller, synergies may be required to justify the premium.<\/p>\n<p>For example, let\u2019s say that a Seller\u2019s Market Cap or <a href=\"https:\/\/www.mergersandinquisitions.com\/enterprise-value-vs-equity-value\/\" target=\"_blank\" rel=\"noopener\">Equity Value<\/a> is currently $100.<\/p>\n<p>To win approval from the Seller\u2019s shareholders to acquire the Seller, the Buyer offers $125, which is a 25% premium.<\/p>\n<p>If the Seller\u2019s fair value as an independent, publicly traded entity is only $100, then the Buyer can justify this higher price of $125 only if it realizes <strong>significant synergies<\/strong> in the deal.<\/p>\n<p>You can estimate the value of these synergies by projecting their after-tax cash flows, assigning them a Terminal Value, and discounting everything at an appropriate Discount Rate (normally the <a href=\"https:\/\/breakingintowallstreet.com\/kb\/discounted-cash-flow-analysis-dcf\/wacc-formula\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Weighted Average Cost of Capital<\/a> for the Buyer):<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-23804 size-full\" title=\"Synergy Valuation in Merger Models\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075113\/02-Synergy-Valuation-Merger-Model.jpg\" alt=\"Synergy Valuation in Merger Models\" width=\"937\" height=\"555\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075113\/02-Synergy-Valuation-Merger-Model.jpg 937w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075113\/02-Synergy-Valuation-Merger-Model-300x178.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075113\/02-Synergy-Valuation-Merger-Model-768x455.jpg 768w\" sizes=\"(max-width: 937px) 100vw, 937px\" \/><\/p>\n<p>Here, for example, we estimate the synergies\u2019 value at ~$1.2 billion, and Builders FirstSource is paying an equity premium of only ~$300 million for BMC (<strong>NOTE:<\/strong> In this screenshot, we\u2019re valuing both Revenue Synergies and Cost Synergies; the section below explains Cost Synergies).<\/p>\n<p>Therefore, it seems like the premium the Buyer is paying is more than justified by the synergies it will realize \u2013 assuming the numbers are even close to correct.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cost_Synergies_101_Got_Realism\"><\/span><strong>Cost Synergies 101: Got Realism?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While Revenue Synergies are important in some deals, they are also highly speculative because no one can \u201cpredict\u201d how sales will change when two companies merge.<\/p>\n<p>It\u2019s <em>possible<\/em> that Company B will sell more of its product to Company A\u2019s customers, but until the deal closes, no one knows for sure.<\/p>\n<p>Therefore, <strong>Cost Synergies<\/strong> are often taken more seriously in M&amp;A deals.<\/p>\n<p>They\u2019re more grounded in reality because they\u2019re based on <strong>the current spending levels of the Buyer and Seller.<\/strong><\/p>\n<p>For example, if the Buyer and Seller both have human resources (HR), information technology (IT), and accounting teams, they <em>probably don\u2019t need to maintain these separate teams at their current sizes<\/em> after a merger.<\/p>\n<p>They can probably form one consolidated team for the combined company with fewer employees.<\/p>\n<p>Besides a \u201creduction in force\u201d (RIF), AKA laying off employees, Cost Synergies could also come from:<\/p>\n<ul>\n<li><strong>Renegotiated supplier agreements<\/strong> that result in the combined company paying less for Inventory because of larger order sizes.<\/li>\n<li><strong>Building consolidation<\/strong> because the combined company probably won\u2019t need as many buildings as the companies did separately. A lower building count means fewer leases, a lower rental expense, and, under IFRS, less in <a href=\"https:\/\/www.mergersandinquisitions.com\/lease-accounting\/\" target=\"_blank\" rel=\"noopener\">lease interest and lease depreciation<\/a>.<\/li>\n<li><strong>Information Technology (IT)<\/strong> because if one company has more efficient systems or software, it might get the entire, combined business to use that setup and save money.<\/li>\n<li><strong>Reduced sales &amp; marketing (S&amp;M) spending<\/strong> because the combined company may not have to spend as much on marketing as the separate companies did; it may also get better advertising rates due to higher volume.<\/li>\n<\/ul>\n<p>The concept of Cost Synergies is nice, but <strong>their implementation<\/strong> in models is equally important.<\/p>\n<p>When building Cost Synergies into merger models, the following points are critical:<\/p>\n<p><strong>1) Granularity of Estimates<\/strong> \u2013 Where do the numbers come from? Are these simple percentage reductions, or are you basing them on employee counts, rental rates from lease agreements, and so on?<\/p>\n<p><strong>2) Time Required<\/strong> \u2013 Even if two companies can become more efficient as a combined entity, it will take <em>time<\/em> to realize these efficiencies. The combined company will transition to new buildings, employee organizations, and supplier relationships over several years.<\/p>\n<p><strong>3) Implementation Costs<\/strong> \u2013 Reshuffling an organization also requires money due to employee severance costs, lease-break fees, and the implementation of new systems and processes within IT.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Estimate_Cost_Synergies_in_Merger_Models\"><\/span><strong>How to Estimate Cost Synergies in Merger Models<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A good starting point in any M&amp;A deal is to review the <strong>investor presentation<\/strong> issued by the Buyer or Seller; these presentations usually have estimates for the expected synergies.<\/p>\n<p>For example, here are the estimates directly from Builders FirstSource and BMC in this deal:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-23805 size-full\" title=\"Cost Synergies - Estimates from Builders FirstSource and BMC Stock Holdings\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075113\/03-BLDR-BMCH-Cost-Synergies-Estimates.jpg\" alt=\"Cost Synergies - Estimates from Builders FirstSource and BMC Stock Holdings\" width=\"821\" height=\"599\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075113\/03-BLDR-BMCH-Cost-Synergies-Estimates.jpg 821w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075113\/03-BLDR-BMCH-Cost-Synergies-Estimates-300x219.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075113\/03-BLDR-BMCH-Cost-Synergies-Estimates-768x560.jpg 768w\" sizes=\"(max-width: 821px) 100vw, 821px\" \/><\/p>\n<p>We can then \u201cfoot\u201d these numbers by looking at the average employee cost within the SG&amp;A (Selling, General &amp; Administrative) category for both companies and estimating how many employees might be cut:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-23806 size-full\" title=\"Granular Cost Synergies - Tying Out the Numbers\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075112\/04-Granular-Cost-Synergies.jpg\" alt=\"Granular Cost Synergies - Tying Out the Numbers\" width=\"841\" height=\"621\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075112\/04-Granular-Cost-Synergies.jpg 841w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075112\/04-Granular-Cost-Synergies-300x222.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075112\/04-Granular-Cost-Synergies-768x567.jpg 768w\" sizes=\"(max-width: 841px) 100vw, 841px\" \/><\/p>\n<p>The \u201cmerger &amp; integration costs\u201d associated with these Cost Synergies are typically a percentage of the fully realized annual cost savings.<\/p>\n<p>We might conservatively estimate that these costs represent <strong>100%<\/strong> of the fully realized annual Cost Synergies, matching the company\u2019s expectations:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-23807\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075112\/05-Merger-Integration-Costs.jpg\" alt=\"Merger and Integration Costs Associated with Synergies\" width=\"849\" height=\"868\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075112\/05-Merger-Integration-Costs.jpg 849w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075112\/05-Merger-Integration-Costs-293x300.jpg 293w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075112\/05-Merger-Integration-Costs-768x785.jpg 768w\" sizes=\"(max-width: 849px) 100vw, 849px\" \/><\/p>\n<p>It will also take <strong>time<\/strong> to restructure the company and realize these cost savings, and we assume that these integration costs are front-loaded, with 2\/3 in Year 1 and 1\/3 in Year 2, as shown above.<\/p>\n<p>Here\u2019s what they look like relative to the Cost Synergies:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-23808 size-full\" title=\"Merger and Integration Costs vs. Cost Synergies\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075111\/06-Merger-Integration-Costs-vs-Cost-Synergies.jpg\" alt=\"Merger and Integration Costs vs. Cost Synergies\" width=\"853\" height=\"286\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075111\/06-Merger-Integration-Costs-vs-Cost-Synergies.jpg 853w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075111\/06-Merger-Integration-Costs-vs-Cost-Synergies-300x101.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075111\/06-Merger-Integration-Costs-vs-Cost-Synergies-768x258.jpg 768w\" sizes=\"(max-width: 853px) 100vw, 853px\" \/><\/p>\n<p>We can now estimate the <a href=\"https:\/\/breakingintowallstreet.com\/kb\/finance\/present-value\/\" target=\"_blank\" rel=\"noopener\">Present Value<\/a> of these Synergies, compare it to the Equity Purchase Premium in the deal, and link everything in the full merger model.<\/p>\n<p>We demonstrated the Present Value calculation above, but here are the links and impact on the Combined Income Statement:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-23809 size-full\" title=\"Synergies on the Combined Income Statement\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075111\/07-Synergies-Combined-Income-Statement.jpg\" alt=\"Synergies on the Combined Income Statement\" width=\"929\" height=\"696\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075111\/07-Synergies-Combined-Income-Statement.jpg 929w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075111\/07-Synergies-Combined-Income-Statement-300x225.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075111\/07-Synergies-Combined-Income-Statement-768x575.jpg 768w\" sizes=\"(max-width: 929px) 100vw, 929px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Realistic_Impact_of_Cost_Synergies\"><\/span><strong>The Realistic Impact of Cost Synergies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you <em>properly<\/em> factor in the time and expenses required to realize the Cost Synergies, <a href=\"https:\/\/breakingintowallstreet.com\/kb\/ma-and-merger-models\/eps-accretion-dilution\/\" target=\"_blank\" rel=\"noopener\">the Buyer\u2019s EPS accretion<\/a> will almost always decrease in the first 1-2 years but increase after that.<\/p>\n<p>The Buyer incurs most of the merger and integration costs early in the combined period but reaps the full benefits later.<\/p>\n<p>So, Cost Synergies often make deals look worse in the short term, even if they improve the long-term cash flows associated with deals.<\/p>\n<p>To get around this issue, you could do one of the following:<\/p>\n<p><strong>1) Calculate \u201cPro-Forma\u201d EPS Accretion\/Dilution<\/strong> \u2013 This metric reverses the non-cash effects of an acquisition and usually adds back the merger and integration costs:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-23810\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075110\/08-Pro-Forma-EPS.jpg\" alt=\"Pro-Forma EPS in a Merger Model\" width=\"1006\" height=\"800\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075110\/08-Pro-Forma-EPS.jpg 1006w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075110\/08-Pro-Forma-EPS-300x239.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2019\/10\/19075110\/08-Pro-Forma-EPS-768x611.jpg 768w\" sizes=\"(max-width: 1006px) 100vw, 1006px\" \/><\/p>\n<p><strong>2) Calculate the Long-Term Benefits of the Synergies<\/strong> \u2013 We used this approach above when comparing the Present Value of the Synergies to the Equity Purchase Premium.<\/p>\n<p>We prefer the second approach here because \u201cPro-Forma\u201d numbers are subjective, and there\u2019s no universally accepted way to calculate them.<\/p>\n<p>By themselves, Cost Synergies rarely make or break an M&amp;A deal.<\/p>\n<p>But they often make or break <em>the justification for an M&amp;A deal<\/em>, which is why they\u2019re so important in transaction discussions.<\/p>\n<p><em><strong>This tutorial is a small taste of the knowledge you&#8217;ll gain in our paid courses. <\/strong><\/em><strong>Breaking Into Wall Street<\/strong><em><strong> uses real-life modeling tests and interview case studies to prepare you for investment banking and private equity interviews \u2013 and a leg up once you win your offer and start working. Find out more about our advanced training by via the button below:<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this tutorial, you&#8217;ll learn what Cost Synergies mean, how to estimate them in merger models, and how to compare them to the equity purchase premium in M&#038;A deals.<\/p>\n","protected":false},"featured_media":29317,"template":"","class_list":["post-20869","biws_kb","type-biws_kb","status-publish","has-post-thumbnail","hentry","kb_category-ma-and-merger-models"],"acf":[],"_links":{"self":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/biws_kb\/20869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/biws_kb"}],"about":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/types\/biws_kb"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/media\/29317"}],"wp:attachment":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/media?parent=20869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}