Cannot find the maximum value of a function

Try this:

MaxValue[a Sin[x] + b Cos[x] /. x -> 2 ArcTan[t] // TrigExpand, t, Reals]

MaxValue[{y, Reduce[{y == a Sin[x] + b Cos[x], #}, y, {x}, Reals]}, y]& /@
  {Xor[a == 0, b == 0], a!=0 && b!=0} // FullSimplify

This is essentially what b.g did, except by using Max instead of the second derivative constraint we get the result without rewriting the original expression.

f[x_] = a Sin[x] + b Cos[x];
Simplify[
    Max[f[x] /. Solve[ {f'[x] == 0 }, x] ],
       Assumptions -> {Element[a, Reals], Element[b, Reals], 
         Element[C[1], Integers]}]

Sqrt[a^2 + b^2]

I'm a bit puzzled why the conditional expression on C[1] doesn't simplify out on its own when the C[1] is gone from the expression..?

You can use a more down to earth method :

func = Sqrt[a^2 + b^2] Sin[x + f];
sol = First@Solve[{D[func, {x, 1}] == 0, D[func, {x, 2}] < 0, 
 f \[Element] Reals, a \[Element] Reals, b \[Element] Reals}, x, Reals];

Simplify[func /. sol, Assumptions -> C[1] \[Element] Integers]
(* Sqrt[a^2 + b^2] *)