Facing pressure to make acquisitions pay off quickly, bankers have grown skilled at targeting cost savings to offset premiums paid in mergers. But as acquirers increasingly focus on out-of-market targets, experts say that expense reductions may become less important than forecasting and delivering revenue growth.

At First Manhattan Consulting Group, merger integration experts warn that banks risk cannibalizing revenue opportunities if they are too aggressive in cutting costs. At the same time, they say that banks which understand how to use technology to segment their customers will have greater skill in accurately forecasting revenue potential for mergers.

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