Cost Synergy

Cost synergy is a measurement that’s estimated after two companies have decided to join forces. Typically, “two heads are better than one.”

Cost synergy confirms this theory, as it is how much two companies save on operating costs after they become one head. While cost synergy seems to be all rainbows and butterflies, it is sometimes the result of layoffs. When two companies become one, two CEOs must also become one. Typically, these savings are hooray-type scenarios though; savings from things like patents, R&D, etc.