Business Valuation
Synergies refer to the potential financial benefits that arise when two companies combine, leading to greater efficiency, cost savings, or increased revenue than if they operated independently. These benefits can stem from economies of scale, enhanced market power, or improved operational efficiencies. Understanding synergies is crucial in business valuation as they often play a significant role in justifying acquisition premiums and assessing overall deal value.
congrats on reading the definition of Synergies. now let's actually learn it.