Glossary
M&A Synergy
The added value created when two businesses combine in a transaction.
Definition
M&A synergy is the additional value created when two businesses combine that neither could achieve alone — through revenue growth (cross-selling, new markets) or cost reduction (consolidated operations, scale). Realizing synergy depends far more on disciplined integration than on the deal model.
Context
Most acquisitions underdeliver on synergy because integration is underestimated. Credible synergy plans are grounded in how operations, systems, and people actually combine — not in spreadsheet optimism — and are owned by an integration team from day one. Cultural fit, often ignored, is frequently the deciding factor.