# Synergies

*Corporate Finance & M&A — Finicade finance glossary*

Synergies are the value created by combining two companies — cost savings from removing duplication, or revenue gains from cross-selling. Cost synergies are usually real and achievable, since headcount and facilities are countable. Revenue synergies are usually fantasy, and are the ones used to justify the last increment of a premium. The market's scepticism is reflected in the acquirer's share price falling on announcement more often than not.

**Also known as:** cost synergies, revenue synergies, synergy

**Related terms:** [Mergers and Acquisitions (M&A)](https://finicade.com/glossary/mergers-and-acquisitions), [Post-Merger Integration](https://finicade.com/glossary/post-merger-integration), [Accretion/Dilution](https://finicade.com/glossary/accretion-dilution), [Economies of Scale](https://finicade.com/glossary/economies-of-scale), [Goodwill](https://finicade.com/glossary/goodwill)

Source: https://finicade.com/glossary/synergies