Synergy Valuation

Synergy valuation assesses the added value that can be created when two companies merge or collaborate. It recognizes that their combined strengths, resources, and market presence can lead to greater efficiency, cost savings, and increased revenue than they could achieve separately. For example, they might eliminate duplicate expenses, leverage shared expertise, or access new customers together. This potential for enhanced performance is what investors consider when determining how much a merger or acquisition is worth beyond the individual values of the companies involved.