Synergy management: From pitfalls to value

Abstract

Integrating compatible elements of previous research with insights neglected by the strategic management, change management, organizational behavior and finance literature, this chapter advances a conceptual comprehensive framework to analyze synergy management in M&As. The framework highlights the main dimensions of synergy management, the most relevant synergy pitfalls and the ways to overcome them. An effective synergy management requires an analysis of five dimensions: the steps of the M&A process, the several values of synergy, the forbidding effects of poor synergy management, the potential causes of synergy inflation, and the selection of solutions to synergy pitfalls. The study changes the focus from a single, generic synergy trap to three more analytical, useful synergy pitfalls: the mirage, the gravity hill and the amnesia. By shedding light on synergy pitfalls, we enrich M&A literature and enhance practical solutions to reduce pitfalls in synergy management.