Synergy

What Does Synergy Mean?
The idea that the value and performance of two companies combined will be greater than the sum of the separate individual parts.

Investopedia explains Synergy
This term is used mostly in the context of mergers and acquisitions. For example, if Company A has an excellent product but lousy distribution whereas Company B has a great distribution system but poor products, the companies could create synergy with a merger.

Filed Under: Buzz Words, Financial Theory

Related Terms

Acquisition
Congeneric Merger
Conglomerate
General And Administrative Leverage
Merger
Strategic Buyer
Sum-of-Parts Valuation
Takeover
More Related Terms

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