synergy

noun syn·er·gy \ ˈsi-nər-jē \

Updated on: 16 Apr 2018

Definition of synergy

plural synergies

1 : synergism; broadly : combined action or operation

2 : a mutually advantageous conjunction or compatibility of distinct business participants or elements (such as resources or efforts)

See synergy defined for English-language learners

Examples of synergy in a Sentence

A synergy has developed among the different groups working on this project.
two companies that have found synergy

Recent Examples of synergy from the Web

From Burning Man to Panorama to EDC, fests have also become increasingly bougie, representing a sort of arms race to see which can incorporate the most brand synergy and pretentious glamping amenities.

— jonny coleman, Los Angeles Magazine, "Why the Hell Can’t Hollywood Make a Decent Music Festival Movie?," 11 Apr. 2018
Analysts have estimated that cost synergies in a CBS-Viacom combination could reach $500 million to $750 million or more.

— georg szalai, The Hollywood Reporter, "Viacom Makes Counterproposal to CBS Offer," 9 Apr. 2018
That operational synergy is an improvement over the dynamic last season, when Nagy’s predecessor, John Fox, wasn’t entirely clued in on Pace’s obsession with quarterback Mitch Trubisky until just about when the commissioner called Trubisky’s name.

— dan wiederer, chicagotribune.com, "The Bears are back! At Halas Hall anyway. So now what?," 3 Apr. 2018
Still, their spirit and synergy at this late juncture should bode well for the future of third-year coach Mike Malone.

— sam amick, USA TODAY, "Viewer's guide to NBA's wild Western Conference playoff race," 2 Apr. 2018
Stevens and Sikura have been linemates since their freshman year, but Coach Jim Madigan elevated Gaudette to the top line in late January because of their synergy on the power play.

— gary santaniello, New York Times, "Northeastern, With a Productive Offense and an Ace in the Net, Sets Lofty Goals," 15 Mar. 2018
Looking ahead, Front Country is focused on cultivating new material in the live context in hopes of better realizing that energy and synergy on their next studio effort.

— joshua zucker, San Francisco Chronicle, "Front Country serves up a musical blend it calls ‘roots pop’," 15 Feb. 2018
Its synergy is both energetic, but mellow, minimalistic but ornate.

— chuck yarborough, cleveland.com, "2018 Tri-C High School Rock Off: Meet the bands," 15 Jan. 2018
ABN Amro analyst Tom Kinmonth argued in a note to clients in March that national mergers are more likely to deliver quick cost savings and synergies than cross-border ones.

— birgit jennen, Bloomberg.com, "How Germany Might Sell Its Commerzbank Stake: Four Scenarios," 27 Mar. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'synergy.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Did You Know?

An old saying, "The whole is greater than the sum of its parts", expresses the basic meaning of synergy. The word is sometimes used in a purely physical sense, especially when talking about drugs; sometimes a "cocktail" of drugs may be more effective than the sum of the effectiveness of each of the separate drugs. But the word is best known in the world of business. The notion that, when the right two companies merge, they'll produce a profitable synergy seemed exciting in the 1990s, when synergy became a trendy buzzword (even though it's actually been around since the 17th century). The idea of synergy was one factor in what became a "merger mania;" unfortunately, business synergy often turned out to be harder to achieve than to imagine.

Origin and Etymology of synergy

New Latin synergia, from Greek synergos working together

NEW! Time Traveler

First Known Use: 1632

See Words from the same year

Other Biology Terms

autochthonous, fecund, homunculus, phylogeny, substrate

Financial Definition of SYNERGY

synergy

noun

What It Is

Synergy is the benefit that results when two or more agents work together to achieve something either one couldn't have achieved on its own. It's the concept of the whole being greater than the sum of its parts.

How It Works

Synergy is often one of the goals of a merger or acquisition. The two firms combined may be able to achieve higher profitability than either firm could achieve on its own. Synergy can be reflected in increased revenues and/or lower expenses.

For example, a company may acquire a similar firm, allowing it to expand its product offering and, as a result, increase its sales and revenues. This could not have been accomplished had the two firms remained independant.

In management, synergies may be created between management teams, resulting in increased capacity and workflow that was not possible when the teams were working independently.

As for costs, synergies allow for the creation of economies of scale. For example, a merger can reduce multiple levels of management and duplication and spread fixed cost technologies over larger operations.

Why It Matters

Synergies may be elusive, but they are one of the most important objectives in business. To acquire synergy will result in more efficiency, more efficacy and higher profitability.

Source: Investing Answers