- a)Operation synergy: 1+1>2
- Achieve economies of scale
- Take good advantages of the strengths of each side
- b)Financial synergy
- Reduce tax burden
- Smooth the fluctuation of cash flow
- Reduce capital needs
- Fully utilize free cash flow
- Reduce financing cost
- Improve finance capability
c)Realize the potential value of the undervalued target company
d)Increase the industry concentration
e)Enhance the bargain power with both the supplier and the client
