Financial synergy refers to the added value achieved when companies merge. This leads to greater efficiency, cost savings, and increased revenue potential, which collectively improve the combined firm's financial performance beyond its individual capabilities.

Financial synergy in finance refers to the improved financial performance that results when companies merge, collaborate, or acquire another. In boardrooms across the globe, executives pursue this elusive concept, believing it can transform their balance sheets as they hope that business combinations can make 1+1=3, a powerhouse where the sum is greater than its parts.