How should I evaluate whether projected synergies are realistic when acquiring another business?

Projected synergies should be supported by specific operational evidence rather than broad assumptions. Buyers should identify exactly where value is expected to come from—such as shared management, combined purchasing power, reduced overhead, cross-selling, improved capacity utilization, or stronger market coverage—and estimate the time and cost required to achieve it.

Some anticipated savings never materialize because systems, cultures, customers, or operating models prove harder to integrate than expected.

A strong acquisition should remain financially supportable even if the projected synergies take longer—or produce less value—than originally anticipated.