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It is generally doable for an acquirer and its target to realize the next degree of sales progress collectively than both firm might by itself. Revenue enhancements are notoriously laborious to estimate, nevertheless, as a result of they contain external variables past administration’s management. The client base of the acquired company, as an example, could react negatively to totally different prices and product options. A mixed customer base could bid4paper balk at making too many purchases from a single supplier. And opponents could decrease their prices in response to an acquisition. Revenue enhancements are so tough to predict, in truth, that some wise firms don’t even embody them when calculating synergy value. Matthew Slatter, the CEO of Bank of Melbourne, says, We model this revenue enhancements, however never issue it into the worth.” Similarly, Peter Shaw at ICI considers them comfortable synergies” and reductions them closely in calculations of synergy value.
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