Which of the following is most true about synergy in the context of M&A?
A) Synergy refers to the cash flows that can be generated only as a result of two businesses combining
B) Realizing synergy usually does not require investment
C) Most often anticipated synergy is realized immediately following closing
D) The value of synergy should not be reflected in the purchase price paid for a target firm
E) None of the above

Question

Quizplus · Accepted Answer

Synergy refers to the additional value that can be created by combining two businesses beyond what they would generate independently. This often includes cash flow benefits that can only be realized through the combination of the businesses.

Which of the Following Is Most True About Synergy in the Context