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Synergy

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Synergy
The effect of a combination of separate actions or operations that make the whole greater than the sum of its parts.
    
Synergy is the idea that the value and performance of two companies combined Will be greater than the sum of the separate individual parts. 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.
    
When one business buys another, synergy is often the goal - that the combined enterprise Will perform better than the previously separate companies because it is more efficient.
Posted by  ebs Finanzakademie GmbH
 
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