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What is the synergy from the merger?

Updated: 8/20/2019
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Q: What is the synergy from the merger?
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What are the reasons for a merger?

operation and or financial synergy increase in or protection of market share unused tax shields meeting regulatory requirments backdoor listing


What is the definition of negative synergy?

synergy that ain't positive is termed as negative synergy...;)


What are the advantages of synergy?

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What is the synergy effect of merger?

synergy effect of mergers means when two businesses merge together than the value or the income of the merged business will be more than that of the individual businesses. It is not just the combined earnings or value of the individual businesses rather the earnings and value increases because the loopholes of one is overcome by the strong areas of other. This disproportionate increase in value is called synergy. Ex: production person combines with marketing person works wonder. co. A intends to take Co. B, so here value synergy can be indicated as: NPVab =Vab-(Va+Vb) NPVab=Value synergy Vab= Value of merged firm Va=Value of co. A Vb=Value of co. B


Mergers and acquisitions might result in?

Mergers and acquisitions (M&A) aims to create synergy between two companies. Although, M&A itself is not a "magical way" of solving a company's problem in terms of growth and profitability. For a merger or acquisition to be successful the real challenge lies on what to do post-merger. A buyer should have a clear plan on how to integrate the business he has acquired to his own company. Without a clear integration plan, any merger or acquisition is bound to fail.


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