Synergy It literally means the working together of two similar agents to produce an effect greater than the sum of their individual effects. It is the ideal sought to be achieved through mergers and acquisitions, whereby the performance of a combined enterprises is expected to exceed the sum of the separated enterprises. This can happen because the strengths of either company (one strong in sales, the other in research and development; one strong in reserves, the other with an excellent EPS, etc.) tend to make the merger produce more than just double results. Often described as 2+2= 5.

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