Which item would not be considered an integration cost when valuing potential acquisitions?

Cost savings from economies of scale would not be considered an integration cost when valuing potential acquisitions because it represents a future benefit that may arise from the merger rather than an actual expense incurred in the process of integrating the two companies. Integration costs refer to the real and immediate expenditures necessary to unify the operations, systems, and workforce of the acquiring and target companies. These include direct costs such as systems integration, employee retraining, and consultation fees, which are associated with the operational changes and adjustments required to achieve a successful merger. In contrast, economies of scale are anticipated future savings that may occur as a result of more efficient production or operational efficiency post-integration, not costs that need to be accounted for in the valuation process. Thus, those savings are potential benefits, rather than expenditures that are required to facilitate the merger itself.