synergy

syn·er·gy | \ ˈsi-nər-jē

plural synergies

Definition of synergy

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)

Did You Know? Example Sentences Learn More about synergy

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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.

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 on the Web The synergy, decision-making and timing was all off for Dallas, so Aero and the Fuel are looking to flush the performance and move on. — Sean Collins, Dallas News, "3 talking points from the Dallas Fuel’s season-worst match against the Paris Eternal," 18 May 2020 Potential for synergies Tegna, headquartered in Tysons, Virginia, has interests in broadcasting, digital media and marketing services. — Russ Wiles, azcentral, "Phoenix investment firm Najafi Cos. joins broadcaster in bid to buy Channel 12 parent," 18 Mar. 2020 It can also be generated by hoped-for synergies from an acquisition, intangible assets such as intellectual capital, as well as a high price for the deal, said Daniel Wangerin, associate accounting professor at the University of Wisconsin-Madison. — Jean Eaglesham, WSJ, "Goodwill Sparks Deep Division, at Least on Balance Sheets," 21 Jan. 2020 The intricate synergies of coffee and capitalism form the subtext of the historian Augustine Sedgewick’s thoroughly engrossing first book, Coffeeland: One Man’s Dark Empire and the Making of Our Favorite Drug. — Michael Pollan, The Atlantic, "Capitalism’s Favorite Drug," 6 Apr. 2020 To me, the whole effort is to create a synergy between all of the players. — Jocelyn Kaiser, Science | AAAS, "To tame testing chaos, NIH and firms join forces to streamline coronavirus vaccine and drug efforts," 17 Apr. 2020 Lang’s barbecue dishes, for which the chef is well-known, are tacked onto the bottom of the menu and don’t have much stylistic synergy with the rest of the cast. — Soleil Ho, SFChronicle.com, "Perry Lang’s in Yountville is a clubby meat palace with a throwback vibe," 20 Feb. 2020 Hwanwoong: Keonhee, of course, compliments his members and makes a good synergy around for us. — Tamar Herman, Billboard, "K-Pop Group Oneus on Aspirations & Musical Color," 10 Feb. 2020 The only way to create collaboration and shared learning in the workplace is by encouraging a sustainable synergy between individuals who focus on their individual knowledge while delivering a common purpose. — Richard Lobo, Quartz India, "Infosys HR chief on the three things Indian offices can do to prepare for millennial workers," 26 June 2019

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.

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Last Updated

26 May 2020

Cite this Entry

“Synergy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/synergy. Accessed 29 May. 2020.

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More Definitions for synergy

synergy

noun

Financial Definition of 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.

Source: Investing Answers

synergy

noun