I need help with the synergy. Looking at the balance sheet; is it a good idea for

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I need help with the synergy. Looking at the balance sheet; is it a good idea for Johnson and Johnson to do an acquisition of Baxter International, Inc. Focus on synergy. Looking at 2019 financial statement

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The scenario is the synergy is achieved between the two companies; that the value and performance of the combined companies becomes greater than their separate values. Their database reflects that approximately 70% of the mergers and acquisitions fail to achieve synergy. Focus on merger and acquisition activities Johnson and Johnson has purchase several companies in the past. Baxter and to help integrate the activities of the two companies. For example, while benefit structures are an area that may be safely put off, successful synergy requires understanding corporate cultures and ensuring quality communications between them. Since Baxter will retain status as a partner, these issues are projected to be less impactful. Baxter will retain its internal structure the flow of information between Baxter and Johnson and Johnson has the potential to result in security vulnerabilities. Ensuring that the infrastructure, data security, security practices for testing, patching, and monitoring and auditing are held to Johnson and Johnson’s high standards will become critical One. The key synergies that Johnson and Johnson expect to achieve is leveraging supply chains and customer markets. All mergers and acquisitions result in risks to supply chains. Two such risks are raw material supply and currency exchange rates. Maintaining a broad, global supply chain is an easy way to mitigate these risks. Because Baxter and Johnson and Johnson share many of the same ideals when it comes to supplier standards, the risk of incorporating new suppliers is minimal. Many of the same raw materials are used by both companies, and in some cases, it is expected that the suppliers will be the same.

Enterprise value at 41.14 billion (Baxter, 2020). Initial offer will be $55 billion. As reported from the 2019 Annual Report, share closing sale price of $81.90 on that date and the assumption for the purpose of this computation only that all the registrant’s directors and executive officers are affiliates, was approximately $42 billion.

Baxter International Inc. Condensed Consolidated Balance Sheet (in millions, except per share)