synergy is for company merger with different type of business or the same type? Thanks.
synergy is a reason to acquire… i.e. the benefits of putting the companies together and gaining efficiencies… It could be a distribution channel, common software platform, economies of scale…you name it…
No!!! Synergy arises when the sum is greater than the parts
Synergy has two meanings. You’re both correct. The synergy everyone else is referring to is cost-reduction synergy/market share growth/revenue growth etc etc.
Synergy is a big fat lie IBs tell clients to justify huge fees and in turn a big fat lie that CEOs tell shareholders to justify mergers to give them larger kingdoms to rule. It is also a big fat lie that analysts of those IBs write in the research reports in order to sell the crap stock after the merger and have the share go up so the merger they recommended can look good to the CEO who sold shareholders the synergy argument and just cashed in his options. There are a lot of studies on synergies and guess what most of the time they are not there. Sorry had to rant, I am burnt out and just dont know what to study anymore. I could do more tests but even if I get in the 70-80s that doesnt mean anything according to some peoples experiences (which is frightening) so maybe I’ll just read and re-read secret sauce for the next four days.