Asked by: Cyrstal Heimbucher
Asked in category: business and finance, mergers and acquisitions
Last Updated: 14th May 2024

What is a dis-synergy?

Dis-synergy is when some of the target’s value will be lost to the acquirer. Examples: Customers may be lost if the target is a supplier of the acquirer's competition.



What is an example of synergy in this context?

Synergy Example Synergy may result in higher revenues and/or lower costs. A company might acquire another similar company to increase its product range and thus increase sales and revenue. If the two companies had remained independent, this would not have been possible.

You may also wonder what synergy is and the types of it. There are three types of synergies that are most common: financial, cost and revenue. Revenue Synergies. A revenue synergy occurs when, due to an acquisition, the combined business is able generate more sales than each of the companies individually. Consider Keystone and LKQ as an example.

What are the sources for synergy, other than this?

Synergistic Benefits generally result from four possible sources:

  • Revenue enhancements.
  • Reduced costs
  • Make improvements.
  • Financial economies.

How can you calculate synergy

Synergy = Net Present Value + Premium,

  1. Revenue increases. You can achieve this by selling more products and services through a broader product distribution.
  2. Reduced expenses
  3. Process optimization.
  4. Financial economy.