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Corporate Synergy
Value generated from the integration and collaboration of different parts of a corporation.
Implications
The benefits that result when different parts of a company or its acquired entities work together more effectively, leading to increased efficiency, innovation, and overall value, often a key goal in mergers and acquisitions.
Example
Example: A tech company realizes corporate synergy by integrating its software and hardware divisions, leading to the development of new products that combine the strengths of both units.
Related Terms
Different from economies of scale, which are cost advantages gained by increasing production, synergy is about the added value created when different parts of the company collaborate effectively.
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