Value of Synergy Aswath Damodaran Stern School of Business October 2005 2 The Value of Synergy Many acquisitions and some large strategic investments are often justified with the argument that they will create synergy. In this paper‚ we consider the various sources of synergy and categorize them into operating and financial synergies. We then examine how best to value synergy in any investment and how sensitive this value is to different assumptions. We also look at how this synergy value should
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Diversification is a good way to increase profits‚ create more value or reduce market risks from having only one or few product lines. As such‚ different companies diversify for various reasons‚ and therefore‚ diversification can be either related or unrelated. However‚ not all the companies succeed when choosing diversification as part of their corporate strategy. Like everything else‚ diversification does come with its ups and downs. Diversification can be beneficial‚ but probably up to a certain
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Diversification Strategies in the Global Retailing Industry: Essays on the Dimensions and Performance Implications DISSERTATION of the University of St. Gallen‚ School of Management‚ Economics‚ Law‚ Social Sciences and International Affairs to obtain the title of Doctor of Philosophy in Management submitted by Timo Sohl from Germany Approved on the application of Prof. Dr. Thomas Rudolph and Prof. Dr. Günter Müller-Stewens Dissertation no. 3987 Difo-Druck GmbH‚ Bamberg 2012
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Synergetic Solutions Inc. Amy R. Simmons COM - 530 Communications for Accountants November 26‚ 2012 Dr. Ed Wirth Synergetic Solutions Synergetic Solutions Inc. is a system integration company that has secured a network design order worth $1.2 million with the possibility of $5 million more in the works (University of Phoenix‚ 2012). Synergetic has five locations on the East coast and employees 300 people‚ most of them being in sales and service departments (University of Phoenix‚ 2012)
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SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES MARKETING MANAGEMENT PROF V.V Ramasastry “Research Paper- Diversification leads to success?” Submitted By- Anil -15
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In organization Synergy becomes very important. Take an organization of your choice and bring out the importance of Synergy in making the organization more productive. Synergy means that the whole is greater than the sum of its parts. In organizational terms‚ synergy means that as separate departments within an organization cooperate and interact‚ they become more productive than if each were to act in segregation. The concept of synergy is resulting from the systems approach in which the management
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create value through related diversification. From solely manufacturing computers‚ Apple in the past ten years has added a music device in the iPod and now a cell phone in the iPhone‚ not to mention a plethora of software for all of its products. Because of such high growth and rapid change‚ Apple must adopt the optimal corporate structure moving forward to maintain its competitive advantage. Due to the variety of features of the iPhone and other products‚ Apple can find synergy in similar features between
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Diversification C’Airea McCluron Entrepreneurial Finance: Capitalization for the Entrepreneur Diversification Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited. This practice is designed to help reduce the volatility of your portfolio over time. Note: Having a lot of investments does not necessarily make your portfolio diversified. For diversity‚ you need several different types of investments. Popular
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Diversification Diversification can be briefly defined as the expansion of a firm into a range of different product areas. Firms may choose to diversify for either of two reasons. First‚ diversification may benefit the firm’s owners by increasing the efficiency of the firm. Second‚ if the firm’s owners are not directly involved in deciding whether to diversify‚ diversification decisions may reflect the preferences of the firm’s managers. Singapore Airlines (SIA) serves as a typical example of diversification
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Choose Related Diversification and When Is It Likely To Choose Unrelated Diversification? Introduction First of all‚ “corporate strategy is what makes the corporate whole add up to more than the sum of its business unit parts” (Porter‚ M. E.‚ 1987 cited in Mintzberg et al 2003‚ p.451). In this regard‚ corporate-level strategy is concerned with two related issues; “first one is what businesses a corporation should compete in and secondly how can these businesses be managed to create synergy?”(Dess‚ Lumpkin
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