Hello YouTube, Todd Ault here, and Welcome to Wall Street Words! Today's word is "Synergy"
Definition = An increase in the value of assets as a result of their combination. Expected synergy is the justification behind most business mergers. The concept is that the combined value and performance of two companies will be greater than the sum of the separate companies. Most commonly used in the context of mergers and acquisitions (M&A).
Synergy, or the potential financial benefit achieved through the combining of companies, is often a driving force behind a merger. For example, General Motors purchased Electronic Data Systems in 1984 with the expectation that considerable synergy would result.
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Wall Street Words word of the day = Synergy
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