• By consolidating production facilities, companies can reduce their fixed costs, such as rent, utilities, and maintenance.
• By sharing resources, such as research and development, marketing, or sales, companies can reduce their operating costs.
• By streamlining administrative functions, such as accounting, human resources, or IT, companies can reduce their overhead expenses.
• By leveraging economies of scale, companies can purchase inputs and raw materials at a lower cost due to increased buying power.

Overall, cost synergies are a key factor in the financial success of mergers and acquisitions, as they can create significant value for the merged entity by reducing costs and increasing profitability.