Value Creation - Some companies consider M&A transactions to create synergy and maximize profit amongst their business operations. When two companies combine their efforts, synergy can result through a reduction in costs and/or an increase in revenue. For example, some companies focus on such revenue synergies in connection with market expansion and enhanced research/development capabilities. Others are more interested in cost synergies that improve cost structure by creating economies of scale. Alternatively, the value of an M&A transaction can be measured by access to superior distribution, a more capable workforce, improved technology, and similar factors that can provide competitive advantages for your business.