List and describe the components used to calculate synergy value.

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1. Cost Savings: This is the largest component of synergy value, and it represents the potential savings achieved from eliminating redundant costs. For example, cost synergies can be gained through shared services such as purchasing supplies, IT operations, and marketing activities.
2. Revenue Enhancement: This is the second major component of synergy value and it involves increasing sales by leveraging existing company assets or capabilities. It could include cross-selling products among customer segments or expanding a product line to new markets.
3. Strategic Benefits: These are synergies which cannot be easily quantified but still offer significant long term benefits to an organization in terms of market share or competitive advantage. An example would include removing a major competitor from the marketplace Allow for increased R&D resources resulting in improved innovation capabilities over time.

4. Tax Advantages: Synergy value also includes any potential tax advantages related to the transaction including potential savings on income taxes due to increased deductions for capital investments or losses generated by merging businesses with different tax profiles.

5 Financial Engineering Benefits: These types of synergies occur when combining two firms creates opportunities for leverage that were not available before such as accessing lower interest rate debt financing or utilizing cash balances more efficiently across multiple entities.