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What is synergy in business?

Updated: 9/15/2023
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12y ago

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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.

Read more: http://www.investopedia.com/terms/s/synergy.asp#ixzz1tYwijkkl

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