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.
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.