Name the 4 types of M&A synergies.

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IBPrep · Accepted Answer

(1) Revenue synergies, cross-sell to the combined customer base, geographic expansion, new product attach; (2) Cost synergies, headcount reduction, facility consolidation, procurement scale, IT/systems consolidation; (3) Tax synergies, relocate HQ to a lower-tax jurisdiction (corporate inversions), step-up depreciation in asset deals, use of acquired NOLs; (4) Financing/leverage synergies, refinance the target's expensive debt with the acquirer's cheaper debt, the larger combined entity gets an investment-grade rating, increased debt capacity for future deals.

Name the 4 types of M&A synergies.

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