---
id: "prereq-traditional-ma-valuation"
type: "prereq"
source_timestamps: ["¶2", "¶4"]
tags: ["finance", "corporate-strategy"]
related: ["concept-resource-based-ma"]
reason: "The thesis relies on contrasting the new ecosystem approach with the historical resource-based approach to M&A."
source_url: "https://hbr.org/2026/06/when-evaluating-an-ma-opportunity-consider-the-broader-digital-ecosystem"
source_title: "When Evaluating an M&A Opportunity, Consider the Broader Digital Ecosystem"
sources: ["ecosystem"]
sourceVaultSlug: "hbr-seg-ecosystem"
originDay: 11
articleStem: "hbr-cl-80-ma-digital-ecosystem"
sourceUrl: "https://hbr.org/2026/06/when-evaluating-an-ma-opportunity-consider-the-broader-digital-ecosystem"
sourceTitle: "When Evaluating an M&A Opportunity, Consider the Broader Digital Ecosystem"
---
# Traditional M&A Valuation and Synergies

**Why required:** The thesis relies on contrasting the new ecosystem approach with the historical resource-based approach to M&A.

The authors contrast their framework against traditional M&A motivations — gaining market power, internalizing knowledge, reducing costs. A reader must have a baseline understanding of how traditional deals are evaluated (calculating cost synergies, acquiring IP, revenue and capital synergies) to appreciate the paradigm shift being proposed. This baseline is captured in [[concept-resource-based-ma]].

**Enrichment note:** Classic synergy typologies — cost, revenue, and financial/capital synergies — remain the standard categories used by consultants and acquirers, and are well supported in mainstream M&A advisory literature. The ecosystem framing is best understood as **additive** to (not a replacement for) this baseline.