How Do Buyers Get Procurement Synergies?

Synergies. They are used to justify all kinds of activity, but no more so than in corporate mergers and acquisitions. Quantify the amount of this value to be created in terms of incremental revenue or cash flow (depending on the method investors prefer to use in valuing the acquiring company) and you have a pie to be split between the buyers and the sellers determining the acquisition premium earned by the target equity owners.