Reminds me of the most commonly raised reason for M&A activity – business ‘synergies’ – a gain to a merged business greater than the sum of the profits of each alone.

However, it practice it often involves one business stepping outside of its field of competence and paying huge takeover premiums for the possibility that synergies may arise due to the takeover. Good in theory, not so good in practice – especially when you paid 25 times pre-recession earnings for the possibility synergies may arise.

Rant over.