Synergy
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A popular reason offered for mergers is that the two firms joined together will be more valuable than the sum of the values of the two independent firms. There will be synergy. Synergy is a process whereby when 1 and 1 are added, more than 2 is obtained. Two firms joined together may be worth more than they are worth individually. There are several reasons why a merger of the two firms may result in total profits larger than the sum of the two individual profits.
Details
- Publication Date
- Jun 19, 2013
- Language
- English
- Category
- Education & Language
- Copyright
- All Rights Reserved - Standard Copyright License
- Contributors
- By (author): Homework Help Classof1
Specifications
- Format