Upon entering into a merger or acquisition, it is important to consider the synergies involved which make the company better, not just bigger. How two companies work together and discern synergies is critical for an effective M&A program, yet this is often overlooked.

In a recent point of view, "Will the deal really deliver?," Deloitte & Touche LLP partners Dan Schweller and Nick Sowar discuss synergy issues in steel companies before a merger or acquisition deal is complete. Schweller and Sowar analyze synergy through a One Mill model of decision making, exposing different types of post-closing synergies. They discuss the five variables to discover potential synergies that buyers in an acquisition should understand:

• The true costs of each process
• Bottlenecks and bumps
• Purchasing and supply contracts
• Future/legacy costs of environmental and pension obligations
• Normalized EBITDA

Learn how a company with significant mill diligence experience can better identify synergies by reading the full article attached at the bottom of the page in PDF format.

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