Synergies are the core value driver for most mergers and acquisitions, yet many organizations struggle to convert synergy expectations into realized performance. Disciplined synergy tracking is essential to ensure that deal value-creation objectives are achieved.
This article outlines common pitfalls and best practices Burnie Group has observed across many post-merger integrations, along with practical guidance for building synergy discipline from Day One.
Key takeaways
High-performing organizations approach synergy realization as a structured program. To build discipline, they:
- Develop synergy in post-merger integration plans early; ideally during diligence
- Integrate synergy initiatives into their PMI plan
- Assign clear owners and governance
- Track benefits and costs consistently
- Maintain executive visibility through realization
Types of synergies in post-merger integration
Synergies in mergers and acquisitions refer to the value that emerges when two companies combine and create greater worth together than they could independently. These benefits can take multiple forms, from driving revenue growth to reducing costs or optimizing financial and operational assets.
- Revenue synergies, such as new or expanded sales opportunities from combined capabilities or cross-selling.
- Cost synergies, including expense reductions through consolidated functions and efficiencies, or vendor consolidations.
- Capital and asset synergies, such as better leveraging of assets or greater access to capital.
- Accounting and tax synergies, including optimizing tax positions or financial structures.
Understanding these different types helps leaders set targeted synergy goals and establish tailored tracking and execution plans that reflect the full spectrum of value creation potential across the integration lifecycle.
Synergy types have different paths to value
While synergy categories are often discussed separately during deal evaluation, in practice, they are highly interdependent and unfold at different speeds during integration. Cost synergies, such as procurement savings, organizational rationalization, or shared services, are typically more tangible and faster to capture, making them an early focus during post-close integration.
Revenue synergies, however, often require deeper operational alignment, customer trust, and coordinated go-to-market execution, meaning their realization tends to lag but can ultimately deliver greater long-term value. Capital and asset synergies depend on disciplined portfolio and balance-sheet management, while accounting and tax synergies require careful governance and regulatory awareness to ensure benefits are sustainable and compliant.
Because each synergy type follows a different realization curve, effective post-merger integration requires differentiated tracking approaches rather than a one-size-fits-all model. Treating all synergies as equal, or measuring them using identical metrics and timelines, can obscure risks, create false confidence, or delay corrective action.
Organizations that succeed in synergy realization explicitly tailor ownership, KPIs, milestones, and governance to the nature of each synergy category, enabling leaders to balance near-term execution with longer-term value creation throughout the integration lifecycle.
Why organizations miss their synergy targets
Despite thoughtful due diligence and robust business cases, synergy realization often falls short. The most common causes include:
- High-level synergy plans that lack execution detail: Ambitions are not translated into concrete initiatives with timing, dependencies, and resource requirements.
- Unclear roles and ownership: Without defined accountability, synergy initiatives lose momentum or compete with day-to-day operational priorities.
- Inconsistent definitions and fragmented reporting: Different teams use different baselines, data sources, or tracking methods. An example is tracking only departing positions but not re-hired resources or external contractor substitutes, making it difficult to create a unified view of progress.
- Underestimating integration complexity: Systems, culture, and process alignment require more time and investment than anticipated, delaying or diluting synergies.
- Limited visibility into integration costs: Organizations often track the “benefit” side of synergies without carefully tracking the cost to achieve them.
Best practices for effective synergy tracking
1. Develop a Detailed, Actionable Synergy Realization Plan
Synergy targets should be broken down into well-defined initiatives with milestones, interdependencies, and resource needs. Embedding this plan into the wider PMI roadmap ensures alignment across teams and avoids competing priorities.
2. Establish Clear Ownership and Accountability
Each synergy initiative should have a single accountable owner with defined responsibilities and decision rights. Linking synergy targets to performance-based compensation reinforces focus and accelerates execution.
3. Define KPIs and Standardize Measurement
Organizations should establish clear definitions, data sources, baselines, and reporting cadences from the outset. Standard KPIs, financial and operational, create “one version of the truth” and enable early issue identification.
4. Centralize Synergy Tracking
A centralized tracking tool or repository consolidates initiative status, financial impact, risks, and dependencies. This increases transparency, simplifies reporting, and supports consistent executive governance. The tool is often managed by a dedicated integration team.
5. Maintain Strong Leadership Engagement and Governance
Sustained executive sponsorship is one of the strongest predictors of synergy success. An Integration Management Office (IMO) or dedicated governance structure, as well as clear, strong leadership guidance from the top of the house ensures cross-functional coordination and keeps synergy delivery on the leadership agenda.
Conclusion
Synergies remain a primary justification for most M&A transactions, yet many organizations struggle to achieve them. Clear planning, disciplined tracking, consistent measurement, and strong governance are the foundations of successful synergy delivery.
By embedding these practices into the PMI process from Day 1, organizations can move from synergy “hope” to synergy “performance,” ensuring the deal achieves its intended value.
Burnie Group has successfully supported clients from various industries during the post-merger integration, including effective synergy planning and realization.
If you are looking for support to build measurable performance, our experienced team is here to help. Contact us today to start the conversation.
Frequently asked questions
When is the best time to start synergy planning?
The most successful integrations begin synergy planning during due diligence. This lets you hit the ground running on Day One with validated targets and assigned owners, rather than spending the first 90 days of the merger trying to define success.
What is “synergy leakage” and how do we prevent it?
Synergy leakage occurs when the expected benefits of a merger are eroded by unforeseen integration costs, employee turnover, or operational friction. To prevent this, you must track net synergies, measuring the cost to achieve the benefit against the benefit itself, and maintain a centralized tracking tool to catch performance dips before they become permanent losses.
Who should be responsible for tracking synergies?
While the Integration Management Office (IMO) provides the necessary framework and tools, true accountability rests with individual workstream owners. Each synergy initiative must have a single, empowered leader responsible for hitting specific financial and operational targets.
By Alexey Saltykov, Practice Leader, Post-Merger Integrations and Sebastian Hahn, Engagement Manager.