<p>I see this word tossed around all over forms from here to WSO. But, does anyone really know what synergy means - or is really just a BS term? </p>
<p>Merriam-Webster doesn't do much better - defining Synergy as "a mutually advantageous conjunction or compatibility of distinct business participants or elements (as resources or efforts)". Apparently people have an advantage when they do things in groups. Surprise, surprise.</p>
<p>Out of sheer curiosity, share your thoughts.</p>
<p>Trolls welcome.</p>
<p>There are hard synergies and soft synergies. Hard synergies are ones you will almost certainly get from combining companies (you only need one ceo, one cfo, maybe keep 15% of the old HR, one firm to do your taxes, etc.). Soft synergies are ones you think you can get but are not sure of. So if you combine a company with a new product with a company with a great sales network, the expected increase in sales would be a soft synergy.</p>
<p>^Expense vs. revenue synergies. The former are much easier to quantify (ex-ante and ex-post).</p>