The added value created by joining two separate firms, enabling a greater return to be achieved than by their individual contributions as separate entities; i.e. the overall gain in return is greater than the sum of its parts. The synergy is usually anticipated and analysed during merger or takeover activities; for example, one firm's strength in marketing would be complementary to the other firm's versatility in new product development. Although synergy is often optimistically sought, it is often hard to achieve in practice due to resistance to change, particularly after a contested takeover. The corporate culture that each participant may have built up over many years of separate existence may prove too inflexible to enable a productive merger to be achieved without friction.

See also:

coupon stripping.

See:

anergy.

• circuit breakers
• circuity of action
• circular letter of credit
• circular transaction
• circulating capital
• CISCO
• Citibank
• CITIC
• City
• city bank
• City Call
• City Code on Takeovers and Mergers
• City Group for Smaller Companies
• claim
• class
• class action
• classical system of corporation tax
• clawback
• Clayton Act
• clean floating
• clean price
• clear days
• cleared balance
• cleared for fate
• cleared value