Revenue synergies in chemicals deals

As organizations find cost cutting opportunities in deal transactions, they often overlook defining and capturing revenue synergies. Additionally, focusing on one side of the deal and lack of dedicated resources and knowledge of the entire portfolio make capturing revenue synergies difficult.

Whether developing an achievable valuation target for acquisitions, or trying to extract greater value from deals, chemical companies benefit from understanding how to design and follow through on effective revenue synergy strategies. KPMG has identified three actions that provide the greatest opportunity for achieving this.

• Identify combined go-to-market strategy opportunities
• Organize sales teams, incentive structures, and the future state model around customers and growth plans
• Develop dynamic pricing strategies that can improve customer product profitability

Today’s M&A environment requires dynamic strategies to navigate disruption, making it more difficult for companies to extract deal values that meet stakeholder expectations. A deal integration plan that thoughtfully incorporates revenue synergies can thus help organizations attain outcomes that cost synergies alone cannot produce.

In this paper, find out how chemical companies can drive commercial synergies to uncover long-term deal success. We also describe the key enablers that can help capture more value.