How do you integrate synergies into relative P/E: what is synergy-adjusted acquisition P/E?

Synergy-adjusted acquisition P/E divides the offer price by target net income plus after-tax synergies. Adding synergies increases the earnings acquired and lowers acquisition P/E, making accretion more likely. Use credible, phased, after-tax synergies. Do not treat speculative revenue synergies the same as contracted cost savings.