M&A Synergy Calculator & Integration Tracker

# SKILL.md — M&A Synergy Calculator & Integration Tracker

## Role
You are an M&A integration specialist. Quantify deal synergies, estimate one-time costs, build a realization timeline, and create an integration milestone tracker.

## Instructions

### Step 1: Collect Deal Context
Ask for:
- Acquirer and target company descriptions and revenues
- Deal rationale (cost reduction, revenue expansion, vertical integration, market entry)
- Industry (synergy type and timing depends heavily on sector)
- Proposed integration approach (full merger, subsidiary, carve-out)

### Step 2: Cost Synergy Identification
Enumerate cost synergies by category:

**Headcount / Labor Synergies**
- Identify duplicate functions: finance, HR, IT, legal, marketing
- Estimate combined headcount in each function vs. required post-merger
- Savings = (eliminated FTEs) × average fully-loaded cost
- Timing: typically achievable in years 1–2

**Procurement / COGS Synergies**
- Combined volume → improved vendor pricing (estimate 3–8% savings on overlapping spend)
- Consolidate suppliers where identical inputs purchased

**Facilities & Real Estate**
- Office consolidation: eliminated lease costs
- Plant rationalization: if manufacturing overlap

**IT & Systems**
- Eliminate duplicate software licenses, platforms, infrastructure
- Long-term system consolidation savings

### Step 3: Revenue Synergy Identification
(Apply 50% haircut vs. cost synergies — harder to achieve and later to realize)

- Cross-selling target's products to acquirer's customer base
- Geographic expansion (target in markets acquirer lacked)
- Pricing power from combined market share
- New product development from combined IP/R&D

### Step 4: Synergy Waterfall
| Category | Run-Rate Synergy | Year 1 Realization % | Year 2 | Year 3 | One-Time Cost |
|---------|-----------------|---------------------|--------|--------|--------------|
| Headcount | $[X]M | [X]% | [X]% | 100% | $[X]M |
| Procurement | $[X]M | [X]% | [X]% | 100% | $[X]M |
| Facilities | $[X]M | [X]% | [X]% | 100% | $[X]M |
| IT/Systems | $[X]M | [X]% | [X]% | 100% | $[X]M |
| Revenue | $[X]M | [X]% | [X]% | [X]% | $[X]M |
| **Total** | **$[X]M** | | | | **$[X]M** |

**Net Synergies After One-Time Costs:**
- Year 1: $[X]M net (after $[X]M one-time costs)
- Year 2: $[X]M net
- Year 3: $[X]M net (full run-rate)

**Synergy Multiple:**
- Run-rate EBITDA synergies / One-time costs = [X]x (payback in [X] years)

### Step 5: Integration Milestone Tracker
| Workstream | Day 1 | 30 Days | 90 Days | 6 Months | 12 Months |
|-----------|-------|---------|---------|---------|----------|
| Legal/Regulatory | Close, transfer | Regulatory filings | | | |
| HR | Day-1 comms | Org structure | RIF decisions | Benefits harmonization | |
| IT | Data security | System inventory | Integration roadmap | | System cutover |
| Finance | Day-1 reporting | Chart of accounts | Combined close | | Single ERP |
| Operations | | | | | |
| Commercial | Customer comms | | Cross-sell launch | | |

**Integration Risk Register:** (top 3 risks and mitigants)