Synergistic value
A short, practical note on synergistic value, with the public definition from IVS / Red Book (effective 31 January 2025).
In my practice, synergistic value is the value that results from combining two or more assets or interests, where the whole is worth more than the sum of the parts. A common example I see is merging two adjoining plots, or a tenant buying the property it occupies. If the synergy is available to only one buyer, synergistic value differs from market value. The Red Book asks for care to ensure the client fully understands this basis whenever it is used — and I treat that requirement literally.
“The result of a combination of two or more assets or interests where the combined value is more than the sum of the separate values.”
Source: IVS Glossary 10.28 (= IVS 102 Appendix A50.01)
Common confusion
Synergistic value ≠ market value when the synergy exists only for one special purchaser (often called marriage value).