Synergy happens when the value of two businesses brought together is greater than the sum of the value of the two individual businesses. 1+1 > 2

Sources of Synergy Benefits

  • Cost Savings
    • Eliminate duplicated functions and services
    • Better deals from suppliers
    • Higher productivity and efficiency from shared assets
  • Revenues
    • Cross-selling to customers to both businesses
    • Access to new distribution
    • Brand extensions
    • New geographic markets opened up