Synergy
Combined effect greater than sum of parts.
Formula
Synergy Value = Combined Value − (Value A + Value B)
Real World
When Disney acquired Pixar in 2006, the resulting synergy produced blockbusters like Toy Story 3 by combining Disney's distribution and marketing muscle with Pixar's creative technology.
Exam Focus
When evaluating synergy in M&A questions, counter with evidence that cultural clashes or integration costs can destroy the anticipated value.
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