synergy

noun syn·er·gy \ ˈsi-nər-jē \

|Updated on: 19 Aug 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

In a deal, Baumgartner estimates synergies topping out at 8 percent of Campbell's revenue.

— janet freund, chicagotribune.com, "Analysts say Campbell not appetizing for Kraft Heinz," 25 June 2018
With Sony’s Venom, starring Tom Hardy as Eddie Brock, set for release in October, the death of Thompson and current emphasis on Brock as the comics' sole Venom points towards an ongoing synergy between Marvel Comics and their associated films.

— richard newby, The Hollywood Reporter, "A Eulogy for a Fallen Spider-Man Character," 31 May 2018
Japan’s SoftBank also has plenty of cash, likes investing in more mature tech businesses and encourages synergies among firms in its stable.

— The Economist, "As Tesla’s share price falls, it becomes an inviting takeover target," 26 May 2018
Field, the chief executive, said the Entercom/CBS Radio stations would make a viable national platform for advertisers, leading to market-share gains and synergies.

— bob fernandez, Philly.com, "Fidelity mutual fund giant takes big hit on Bala Cynwyd-based Entercom," 21 May 2018
Producing and shipping frozen foods is expensive, leading analysts to believe there would be substantial cost synergies from a merger.

— aaron back, WSJ, "A Frozen Foods Deal to Melt the Competition," 27 June 2018
But the track record of giant companies successfully achieving such synergies is dismal.

— alan murray, Fortune, "Trump Diplomacy, Wilbur Ross, China Surplus: CEO Daily for July 13, 2018," 13 July 2018
Call it synergy: A molecule ain’t nothin’ without its friends.

— matt simon, WIRED, "The Amphiphilic Liquid Coating That Keeps Your Avocados Fresh," 21 June 2018
Trinity Mirror now owns over 100 newsbrands, and plans more acquisitions -- but the priority for 2018 is integrating the Northern & Shell titles, the synergies of which should be fully felt by 2020, Fox said.

— Bloomberg.com, "As Trinity Mirror Gets New Name, Another Thing Stays: Weak Sales," 5 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

in the meaning defined at sense 1

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