How do cost savings help create synergy?

What will be an ideal response?

Cost savings are the most common synergy and the easiest to estimate. Financial markets tend to understand and
accept cost savings as a rationale and are more likely to reward savings-motivated M&As with higher stock prices
than other forms of synergy. Revenue-enhancement opportunities, such as increasing total sales through
cross-selling and enhanced distribution, also represent a significant upside in many M&As. It's more difficult,
however, to calculate and implement revenue enhancement synergies (sometimes calledsoft synergies) than
cost-savings synergies.