Assessing Operational Synergies in M&A
(2026) MIOM05 20261Department of Industrial and Mechanical Sciences
Production Management
- Abstract
- Synergies are frequently cited as a primary rationale for mergers and acquisitions, yet they are often overestimated in the pre-acquisition phase and inadequately translated into realised value. While prior research has extensively examined the financial valuation of synergies, less attention has been given to the organisational processes through which synergies are identified, evaluated and communicated, particularly in occasional acquirers without a dedicated M&A function. This thesis addresses that gap by examining how operational synergies are assessed and communicated in the pre-acquisition phase at Sandberg Development, a privately held Swedish investment company accelerating acquisitions of mature companies.
The study adopts a... (More) - Synergies are frequently cited as a primary rationale for mergers and acquisitions, yet they are often overestimated in the pre-acquisition phase and inadequately translated into realised value. While prior research has extensively examined the financial valuation of synergies, less attention has been given to the organisational processes through which synergies are identified, evaluated and communicated, particularly in occasional acquirers without a dedicated M&A function. This thesis addresses that gap by examining how operational synergies are assessed and communicated in the pre-acquisition phase at Sandberg Development, a privately held Swedish investment company accelerating acquisitions of mature companies.
The study adopts a qualitative case study design with an abductive approach, structured around two empirical iterations. The first iteration analyses two acquisitions - the completed acquisition of Silanos and the ongoing acquisition of Company X - drawing on semi-structured interviews with key stakeholders across Sandberg Development and its subsidiaries. The second iteration tests the developed framework from the first iteration through a synergy workshop, applied to the Company X case.
The findings indicate that synergies at Sandberg Development emerge organically through existing business relationships and are discussed informally rather than documented, quantified or anchored in clear ownership. This relationship-driven approach exposes the organisation to attentional crowding-out, delayed realisation and fragmented communication. Extending the Synergy Value Assessment framework of Garzella and Fiorentino (2017), the study proposes a three-phase framework - identify, evaluate and manage - designed as an accessible stepping stone for firms without dedicated M&A functions. The workshop application provides initial evidence that the framework is operationalizable in practice. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/student-papers/record/9240484
- author
- Andersson Kihlström, Erik LU and Sölveland, Jacob LU
- supervisor
- organization
- course
- MIOM05 20261
- year
- 2026
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Mergers and acquisitions, synergy assessment, operational synergies, pre-acquisition process, synergy valuation, attention-based view
- other publication id
- 26/5356
- language
- English
- id
- 9240484
- date added to LUP
- 2026-06-17 18:09:36
- date last changed
- 2026-06-17 18:09:36
@misc{9240484,
abstract = {{Synergies are frequently cited as a primary rationale for mergers and acquisitions, yet they are often overestimated in the pre-acquisition phase and inadequately translated into realised value. While prior research has extensively examined the financial valuation of synergies, less attention has been given to the organisational processes through which synergies are identified, evaluated and communicated, particularly in occasional acquirers without a dedicated M&A function. This thesis addresses that gap by examining how operational synergies are assessed and communicated in the pre-acquisition phase at Sandberg Development, a privately held Swedish investment company accelerating acquisitions of mature companies.
The study adopts a qualitative case study design with an abductive approach, structured around two empirical iterations. The first iteration analyses two acquisitions - the completed acquisition of Silanos and the ongoing acquisition of Company X - drawing on semi-structured interviews with key stakeholders across Sandberg Development and its subsidiaries. The second iteration tests the developed framework from the first iteration through a synergy workshop, applied to the Company X case.
The findings indicate that synergies at Sandberg Development emerge organically through existing business relationships and are discussed informally rather than documented, quantified or anchored in clear ownership. This relationship-driven approach exposes the organisation to attentional crowding-out, delayed realisation and fragmented communication. Extending the Synergy Value Assessment framework of Garzella and Fiorentino (2017), the study proposes a three-phase framework - identify, evaluate and manage - designed as an accessible stepping stone for firms without dedicated M&A functions. The workshop application provides initial evidence that the framework is operationalizable in practice.}},
author = {{Andersson Kihlström, Erik and Sölveland, Jacob}},
language = {{eng}},
note = {{Student Paper}},
title = {{Assessing Operational Synergies in M&A}},
year = {{2026}},
}