How would you set up integration governance and synergy tracking so the deal actually delivers the value underwritten?
A core M&A Advisory interview question — asked in analyst and associate interviews across IB, PE, and the Big 4.
THE SHORT ANSWER
Synergies are underwritten at signing but realized only through disciplined execution, so I'd put governance in before close. Stand up an Integration Management Office (IMO) with a clear owner and a steering committee, and start Day-1/100-day planning early. Translate each synergy in the deal model into specific initiatives with named owners, baselines, milestones, and a dollar target and timeline — then track actuals against that bottom-up plan, not the top-down number, with regular reporting to the steering committee. Distinguish run-rate from in-year synergies and net them of one-off costs to achieve. Critically, tie incentives to delivery and protect the base business (revenue synergies and customer retention are where deals most often disappoint). The governance turns a number in the model into accountable line-items, surfaces slippage early, and prevents the classic failure of declaring victory at signing and losing the value in execution.
WHAT INTERVIEWERS LISTEN FOR
- ✓Set up an IMO + steering committee before close; Day-1/100-day plan
- ✓Decompose model synergies into owned initiatives with baselines/milestones
- ✓Track actuals bottom-up, net of cost-to-achieve; run-rate vs in-year
- ✓Tie incentives to delivery; protect base business/revenue synergies
COMMON MISTAKES
- ✗No owner or governance for synergies
- ✗Tracking only the top-down number
- ✗Ignoring cost-to-achieve and base-business protection
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