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Discuss briefly the two forms of ‘synergy’ that accrue to the merging firms. - Entrepreneurship

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प्रश्न

Discuss briefly the two forms of ‘synergy’ that accrue to the merging firms.

लघु उत्तर

उत्तर

Synergy can take the following forms:

  • Operating synergy: The cost savings that come through economies of scale or increased sales and profits. It leads to the overall growth of the firm.
  • Financial synergy: This is the result of financial factors such as lower taxes, higher debt capacity or better use of idle cash.
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