In the Context of M&A, Synergy Represents the Incremental Cash

Essay

In the context of M&A, synergy represents the incremental cash flows generated by combining two businesses. Identify the potential synergies you believe could be realized in Google's acquisition of Nest that could be achieved by leveraging other Google products and services. Be specific. Identify synergies Google is not likely to realize by operating the firm as a wholly-owned largely autonomous subsidiary. Speculate as to why Google has chosen to operate Nest in this manner.