synergy

Cards (2)

  • What is Meant by “Synergy”?
    It happens when the value of two businesses brought together is higher than the sum of the value of the two individual businesses. in other words, when synergy happens.
  • two types of synergy
    Cost synergies : Reductions in costs as a direct result of the combination of businesses. Eliminate duplicated functions & services, Better deals from suppliers, Higher productivity & efficiency from shared assets
    Revenue synergies : Increased revenues that are generated as a direct result of the combination of businesses. Cross-selling to customers of both businesses Access to new distribution, Brand extensions, New geographic markets opened up