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SHOULD YOU INTEGRATE OR INFUSE YOUR M&A DEAL? THERE ARE ARGUMENTS FOR BOTH

SHOULD YOU INTEGRATE OR INFUSE YOUR M&A DEAL? THERE ARE ARGUMENTS FOR BOTH

FromM&A STORIES - The Good, The Bad and The Ugly


SHOULD YOU INTEGRATE OR INFUSE YOUR M&A DEAL? THERE ARE ARGUMENTS FOR BOTH

FromM&A STORIES - The Good, The Bad and The Ugly

ratings:
Length:
28 minutes
Released:
Nov 15, 2022
Format:
Podcast episode

Description

In today's episode, Rob and Toby continue the conversation about 'infusion', the art of purposely planning the deal as a value-add exercise and being committed to adjusting your operating model to 'infuse' the best of both sides. Rob and Toby kick off by proposing that traditional integration is what we refer to as 'scale deals' ie: bolting two entities together so the end result is more efficient, but principally a larger version of the two originating parts. Scope deals on the other hand are about setting out to 'fuse' the best parts of each business so as to produce a 'new' organisation that is stronger than before and is now able to capture new geographies, enhance design capabilities or perhaps add an entirely new product range or service. These deals are about infusing those things that each organisation is exceptionally good at and maximizing the advantages via a willingness to adjust the operating model appropriately.You can listen to what we say about this, and we also recommend you read a well-written article from Strategy+Business entitled 'The Capabilities Premium in M&A'. Highly recommended reading.
Released:
Nov 15, 2022
Format:
Podcast episode

Titles in the series (89)

These M&A War Stories podcasts are for anyone engaged in M&A or Divestment activity. Every week your hosts Robert Heaton & Toby Tester, along with special podcast guests, will draw on their past M&A experience through case studies and what hopefully will prove to be interesting stories. By chipping in with our own thoughts and experiences our aim is that all of us professionally involved in M&A – CEOs, CFOs, Executives, Consultants and Advisors, get that little bit better next time round.