When strategic buyers evaluate an acquisition, the numbers matter—but the fit often matters more. The concept that ties fit and value together is synergy. It’s the reason some acquisitions transform entire industries while others quietly fade away.

At Merge, we’ve seen firsthand that understanding what strategic buyers look for often comes down to identifying the right synergies early in the process. When those synergies are clear and achievable, growth can happen faster, more efficiently, and with less risk.

Understanding Synergy in M&A

Synergy in mergers and acquisitions is the idea that the combined value of two businesses is greater than the sum of their parts. In other words, 1 + 1 = 3.

Strategic buyers don’t just see an acquisition target as a standalone company—they see the potential to integrate that business into their existing operations to unlock new efficiencies, revenue streams, and competitive advantages.

Synergies generally fall into two main categories:

  • Cost Synergies – Reducing expenses through economies of scale, shared resources, or streamlined operations.

  • Revenue Synergies – Increasing sales through cross-selling, expanded offerings, or improved market positioning.

What Strategic Buyers Look For in Synergy

While every deal is unique, there are common synergy drivers that consistently make an acquisition more appealing.

1. Complementary Capabilities

Buyers look for skills, services, or products that enhance their current offering. For example, a creative agency might acquire a web development shop to deliver end-to-end digital solutions.

Why it matters: This type of synergy makes it easier to offer a more complete package to customers, often increasing deal sizes and retention.

2. Market Expansion Opportunities

Strategic buyers often target companies with an established presence in markets where they want to grow.

Why it matters: Entering a new market organically can be costly and slow. Acquiring a business with an existing customer base, local expertise, and brand recognition can accelerate growth dramatically.

3. Operational Efficiencies

Sometimes, the value is in what the buyer can remove. Shared back-office functions, consolidated technology platforms, and combined vendor contracts can significantly reduce operating costs.

Why it matters: Cost savings can be realized quickly post-acquisition, improving margins and cash flow.

4. Cultural and Leadership Alignment

Synergy isn’t just about processes—it’s about people. A shared vision and similar work culture can make integration smoother and faster.

Why it matters: Deals often fail when cultures clash. Strategic buyers want teams that can blend effectively to maintain productivity and morale.

5. Strategic Positioning

Sometimes, acquisitions are about owning a unique position in the market—whether that’s a niche customer segment, a proprietary technology, or a defensible competitive advantage.

Why it matters: Owning a unique position can strengthen brand equity and protect against competitors.

How Synergy Creates Value

When strategic buyers identify the right synergies, the benefits ripple across the organization.

  • Faster Revenue Growth – Cross-selling opportunities, bundled services, and expanded distribution can all boost top-line growth.

  • Stronger Market Presence – Combining resources often results in greater brand recognition and authority.

  • Improved Profit Margins – Operational efficiencies reduce costs, increasing profitability.

  • Greater Innovation – Pooling talent and technology leads to faster product development and creative problem-solving.

The Risks of Overestimating Synergies

While synergy is a powerful driver of value, overestimating its potential can lead to disappointing results.

Common pitfalls include:

  • Integration Delays – Technology mismatches or process conflicts can slow down benefits.

  • Cultural Clashes – If teams can’t work well together, productivity suffers.

  • Customer Attrition – Poorly managed integrations can lead to lost clients.

Strategic buyers mitigate these risks by conducting thorough due diligence and developing a detailed integration plan before closing.

Real-World Example of Synergy in Action

Imagine a U.S.-based marketing agency with deep expertise in paid media acquiring a European SEO agency.

Potential synergies include:

  • Cross-selling SEO services to U.S. clients and paid media to European clients.

  • Sharing analytics tools and technology to improve campaign performance.

  • Reducing software licensing costs by consolidating vendors.

  • Leveraging combined creative teams for more robust client campaigns.

Within months, the combined agency could see higher revenue, improved client retention, and stronger global reach.

What This Means for Sellers

If you’re a founder considering a sale, understanding what strategic buyers look for can help you position your business more effectively. Highlight areas where your company could create synergies for a buyer—whether that’s through cost savings, new revenue streams, or market expansion potential.

At Merge, we work with sellers to identify and communicate these strengths so that the right buyers see the full value of the opportunity.

How Merge Supports Strategic Buyers

We help buyers define their acquisition criteria, source aligned opportunities, and evaluate potential synergies. Our team also guides integration planning so that value creation starts on day one.

Because we work across industries and markets, we have the network and insight to connect buyers with off-market opportunities that fit their growth strategies.

Final Thoughts

Synergy is at the heart of why strategic buyers pursue acquisitions. When the right fit is found, it can unlock growth, innovation, and market leadership far beyond what either company could achieve alone.

By focusing on what strategic buyers look for—and carefully planning for integration—both buyers and sellers can maximize the benefits of an acquisition.

If you’re a strategic buyer ready to explore your next acquisition, Merge can connect you with opportunities that align with your vision and create real value. Chat with us today to discuss your growth goals and see what’s possible.