Finance glossary
Synergy
Definition
Extra value created when two companies combine.
Synergy is the idea that a merged company can be worth more than the two firms separately, through cost savings or revenue gains. Cost synergies cut duplicate functions; revenue synergies expand sales. Overestimating synergies is a common reason acquisitions disappoint.
In a sentence
The deal promised $200 million in synergy from cutting overlapping back-office jobs.
Get a word like this every morning
Word of the Day on your Home Screen, with quizzes and flashcards. Get the app →