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Cost Synergy |
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Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. Often this term is used in press releases to add a politically correct spin to bad news.
For example, the CEO might say "While these reductions and closures are difficult actions to take because of the employees involved, I am confident that we will achieve at least $10 million of synergies as a result." See also: Merger |
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| Raises estimate of merger integration annual cost synergy target to $60 million, a $20 million increase With a revenue expectation of well over a half-billion for 2007, and numerous sales and cost synergy expectations and opportunities, we believe that Power-One will become an even more formidable and profitable competitor. The Company will provide annual revenue growth and cost synergy targets that reflect the acquisition of Amazys following the closing of the transaction. |
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