M&A Synergy Realization Waterfall

Every deal deck promises synergies. Few decks show the one-time integration cost that eats into them before they ever reach the combined EBITDA line.

Reading This Tool

How To Use This Waterfall

Enter the target's standalone EBITDA, projected revenue and cost synergies, and one-time integration costs.

The bridge shows exactly how gross synergy projections shrink to a net figure once integration costs are subtracted, and where that leaves combined EBITDA.

Your Inputs

Target's Standalone EBITDA $10,000,000

Projected Revenue Synergies $2,000,000

Projected Cost Synergies $3,000,000

One-Time Integration Costs $1,500,000

Realistic Realization Rate 70%

Revenue synergies in particular are notoriously overestimated in deal models, applying a realization rate below 100% reflects the actual track record of most M&A integrations.

Combined EBITDA Bridge

Risk-Adjusted Combined EBITDA

Gross Synergies (Unadjusted)

Net, Risk-Adjusted Synergies

From Standalone EBITDA To Risk-Adjusted Combined EBITDA

This is a single-period illustration. Actual synergy realization typically phases in over 12 to 36 months post-close, not immediately at closing, model the timing separately for cash flow planning purposes.

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