Mergers & acquisitions, partnerships, and consolidations are primarily about by the value created from the synergies between two or more entities. Synergy is simply when 1 + 1 is greater than 2.
There are four main types of synergies, including revenue, cost, capital, and other financial synergies. Whenever considering any investment, partnership, or consolidation, the evaluation should focus on the potential revenue, cost, capital and other financial synergies.
To get you going on synergies, download the Synergy PowerPoint Worksheet.