Name the 4 types of M&A synergies.

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.