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Mergers and acquisitions cost savings
Where can I find information about the cost savings that result from mergers and acquisitions? The average merger results in a 19 percent savings of the merged companies' combined IS budgets. Source: <http://www.cio.com/archive/031598_forrester.html> We ran an analysis from January 1994 to February 1997
on (bank) acquisitions between $100 and $400 million. The average savings
was 30%. Source: <http://www.banking.com/aba/feature1_0497.htm>
On average, merged banks cut annual total noninterest expense by 0.04%. So, for a merged bank that earns, say, a 1% return on assets (ROA), these average cost savings translate into a 4% increase in ROA. Source: <http://www.frbsf.org/econrsrch/wklyltr/wklyltr99/el99-25.html> Of the companies in the survey, 30% created value as
a result of the transaction. Estimated DoD Cost Premium/Potential Cost Savings (%)
(See Table 2.1 on page 12) The Integration Game See also from the McKinsey quarterly (requires registration)
Since my customer wasn't very picky about where the numbers came from, I also have some one-line excerpts from 11 articles with "% cost savings" information. Since it is rather long, I'd be happy to send anyone a separate e-mail with this additional information. Just let me know! |
