|
Synergy (See Chapters 32 and 44 of the Vernimmen)
Synergy is the improvement of a Risk/return ratio of a company following the improvement of the quality of its Earnings as a result of a merger/acquisition/diversification move (creation of barriers to entry, decrease of Risk of operating cash flows, etc). There are commercial synergies, industrial synergies, and administrative synergies (it should be noted that financial synergies do not exist). Synergy results from a reduction in Charges or an improvement in Sales that leads to the Value of the whole being greater than the sum of the Values of the parts.
Synergy (See Chapters 32 and 44 of the Vernimmen)
Synergy is the improvement of a Risk/return ratio of a company following the improvement of the quality of its Earnings as a result of a merger/acquisition/diversification move (creation of barriers to entry, decrease of Risk of operating cash flows, etc). There are commercial synergies, industrial synergies, and administrative synergies (it should be noted that financial synergies do not exist). Synergy results from a reduction in Charges or an improvement in Sales that leads to the Value of the whole being greater than the sum of the Values of the parts.
See
all terms in the dictionary of finance
|
|
|
|
You get more than just a glossary
on www.vernimmen.com:
- A monthly newsletter with over 60,000
subscribers
- 610,000 financial data for over 16,000
groups
- A 279-question quiz with answers
- A text book that has
sold 130,000 copies
- And all the rest |
