synergy

noun syn·er·gy \ ˈsi-nər-jē \
Updated on: 1 Dec 2017

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)

Examples of synergy in a Sentence

  1. A synergy has developed among the different groups working on this project.

  2. two companies that have found synergy

Recent Examples of synergy from the Web

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


Financial Definition of SYNERGY

synergy

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.


SYNERGY Defined for English Language Learners

synergy

noun

Definition of synergy for English Language Learners

  • : the increased effectiveness that results when two or more people or businesses work together


Medical Dictionary

synergy

noun syn·er·gy \ ˈsin-ər-jē \

medical Definition of synergy

plural synergies

Seen and Heard

What made you want to look up synergy? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

WORD OF THE DAY

allowing a liquid or gas to pass through

Get Word of the Day daily email!

Test Your Vocabulary

Star Wars Words Quiz

  • cu-jedi-training
  • The bounty portion of bounty hunters (such as Boba Fett) comes from a Latin word meaning
Spell It

Can you spell these 10 commonly misspelled words?

TAKE THE QUIZ
SCRABBLE® Sprint

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!