Synergy effect is said to happen when the merged companies are able to work together and eliminate some of the repeated divisional tasks, proving that the company is better off being merged.

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Synergy effect is a real phenomenon that can occur when two or more companies merge. By working together, the merged companies may be able to pool resources, streamline processes, and eliminate redundancies, resulting in cost savings and increased efficiency. Overall, if the synergy effect is strong, the merged company may be able to achieve higher levels of productivity and profitability than the individual companies could have achieved on their own.

Synergy Effect Is Said to Happen When the Merged Companies