Biz Acquisitions and "Synergy"

Business acquisitions are on the rise. Large corporations are buying each other. Large companies are buying more fledging tech startups. Middle market companies are merging.

You often hear "synergy" cited as the reason to acquire. New research is showing that not as much synergy is produced by acquisitions as promised or anticipated. Read this article and see what you think. Instead of business synergy, it's all about one thing...cost savings and profitability.

Now, why is this relevant to economic development? Because acquisitions are on the rise and many communities are going to face some tough decisions about whether to invest public money in M&A deals. And guess what? They will promise you "business synergy." Read the article. This may not be what you'll get.