Some negative facts about synergy are that many of the attempts to synergise never get beyond a few obligatory meetings. Synergy is when the sum is equal to more than the two parts. The reasoning behind strategic alliance is generally given is that two separate companies together create more value compared to being on an individual stand. Synergy is a term that is most commonly used in the context of mergers, acquisitions, strategic partnership, joint venture, franchise etc. Synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts. Cross-business teams are set up to develop key account plans, coordinate product development, and proliferate best practices. The boardrooms are full of brainstorms about ways to collaborate more effectively. The pursuit of synergy is practiced by most businesses in the world.
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