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Synergistic gains are realized when a M&A activity leads to:

a. Value realized from the combined firm is greater than the sum of values realized when the firms were operating separately.
b. Value realized from the combined firm is less than the sum of values realized when the firms were operating separately.
c. Value realized from the combined firm is same the sum of values realized when the firms were operating separately.
d. Value realized from the combined firm is greater than the sum of (1) values realized when the firms were operating separately, (2) the premium paid for the target’s shares and (3) the expenses incurred in carrying out the M&A activity.

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