How Can Synergy Be Achieved in Corporations

In addition to merging with another company, a company can also create synergy by combining products or markets, such as when one company cross-sells another company’s products to increase revenues.

How does an organization achieve synergy?

Synergy is when two or more organizations interact or cooperate to produce a combined effect that is greater than the sum of its separate parts.

What are the 3 types of synergies?

There are three common types of synergies: revenue, cost, and financial. A revenue synergy is when, as a result of an acquisition, the combined company is able to generate more sales than the two companies would be able to separately. For example, consider LKQ and Keystone.