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It’s sometimes possible for an acquirer and its goal to attain the next degree of gross sales development together than both firm may on its own. Revenue enhancements are notoriously onerous to estimate, nonetheless, because they contain external variables beyond administration’s control. The client base of the acquired company, as an illustration, might react negatively to different prices and product options. A combined buyer base may balk at making too many purchases from a single supplier. And competitors could decrease their costs in response to an acquisition. Revenue enhancements are so tough to foretell, in fact, that some sensible firms do not even embody them when calculating synergy worth. Matthew Slatter, the CEO of Financial institution of Melbourne, says, We mannequin this revenue enhancements, but by no means factor it into the price.” Similarly, Peter Shaw at ICI considers them mushy synergies” and discounts them closely in calculations of synergy worth.