Cost vs revenue synergies — which do you trust in a deal model, and why?

How to answer

Cost synergies. They come from eliminating duplicate functions you control directly (back office, facilities, redundant roles), making them more credible and predictable, and the market values them higher. Revenue synergies require the combined entity to actually sell more to customers, which is speculative and slow, so prudent buyers either heavily discount or exclude them from the deal justification.

Key idea: Trust what's inside your control and the market rewards.