Invest Like the Best with Patrick O'Shaughnessy Stephanie Cohen – The Evolution of M&A and Corporate Strategy - [Invest Like the Best, EP.131]
May 7, 2019
Stephanie Cohen, Chief Strategy Officer at Goldman Sachs, shares her wealth of experience in M&A and corporate strategy. She dives into the complexities of mergers, referencing her work on the Fiat deal and the strategic insights gained. Cohen emphasizes the crucial balance between innovation and improving existing operations, and discusses the shift from a transactional to a recurring revenue model. She also tackles the important issue of empowering women in investing, aiming to close the gender gap in finance.
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M&A and Strategy
- M&A is a method of executing strategy, not the reason for it.
- Value creation in M&A comes from focusing on the combined entity's future value, not a zero-sum game.
Fiat Chrysler Deal
- Stephanie Cohen found the Fiat Chrysler deal, involving paying off the US government, the most difficult but rewarding.
- Multiple governments and a pension fund were involved, making negotiations complex.
Preparing for Acquisition
- Companies looking to be acquired should proactively manage their business portfolio and not wait too long to sell.
- Build relationships early with potential buyers, both financial and strategic.