M&A Science

Strategic Alignment Between M&A and Corporate Strategy

Mar 11, 2024

Learn about the importance of strategic alignment between M&A and corporate strategy from Baljit Singh, SVP at Nielsen Ventures. Topics include corporate vs M&A strategy, capital allocation, measuring business unit's success, deal structure, and taking a public company private. Discover real-life examples and how to deal with reluctant sellers in M&A.

01:07:21

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Episode guests

Baljit Singh

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Episode notes

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Quick takeaways

M&A activities must align with corporate strategy to avoid wasted resources and distractions.

Going private can free companies from short-term pressures, allowing for long-term strategic initiatives.

Chapter 11 bankruptcy M&A deals involve distinct structures and challenges, including court approval and asset auctions.

Deep dives

Private vs Public Markets: Factors Driving Companies to Go Private

One of the key reasons companies consider going private is when the public markets undervalue their intrinsic worth, leading to skepticism among investors. Public companies face intense quarterly scrutiny and may struggle with long-term strategic initiatives due to short-term performance pressures. Going private allows companies to invest without the constant spotlight and execute transformative strategies without the constraints of quarterly expectations.

Introduction

3min

Career Progression and Corporate Involvement in M&A

2min

Aligning M&A Strategy with Corporate Goals

16min

Exploring Internal Rate of Return and Business Unit Performance Metrics

4min

Accountability Through Aligned Financial Reporting and Cash Benchmarking

2min

Exploring the Dynamics of Going Private

8min

In-depth Analysis of M&A Negotiations and Perceived Value

2min

Navigating Complex M&A Deals

29min

Baljit Singh, Former SVP, Global Head of Corporate Development at Nielsen Ventures

Engaging in M&A activities just for the sake of doing them is one of the biggest reasons for failed deals. Without a well-defined purpose, these transactions can distract the business and waste massive amounts of resources.

In this episode of the M&A Science Podcast, Baljit Singh, Former SVP, Global Head of Corporate Development at Nielsen Ventures, discusses the importance of strategic alignment between M&A and corporate strategy.

Things you will learn:

• Corporate strategy vs M&A strategy

• Getting the strategy right

• Capital allocation

• Measuring business unit’s success

• Deal structure to preserve cash

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Episode Bookmarks

00:00 Intro

05:10 Corporate strategy vs M&A strategy

09:25 Getting the strategy right

11:17 Best ways to pitch deals

13:09 Pillars of corporate strategy

15:50 Capital allocation

21:06 Measuring business unit’s success

24:52 Holding business units accountable

27:20 Why take a public company private

33:51 Steps to take a public company to private

38:11 Real life examples

48:29 Deal structure to preserve cash

54:45 Dealing with reluctant seller

59:30 Craziest thing in M&A

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M&A Science

Strategic Alignment Between M&A and Corporate Strategy

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Private vs Public Markets: Factors Driving Companies to Go Private

The Mechanics of Taking a Company Private

Unique Deal Experiences: M&A and DIP Financing in Chapter 11 Restructuring

Managing Complex Transactions in Chapter 11 Bankruptcy

Financial Structuring and Deal Challenges

Remember Everything You Learn from Podcasts