Synergy
The idea that the value and performance of two companies combined will be greater than the sum of the separate individual parts. Investopedia Says:
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. Related Terms:
Acquisition
Conglomerate
General And Administrative Leverage
Merger
Sum-of-Parts Valuation
Takeover |