Uncovering Capital Allocation Strategies
M&A Science22 Apr 2024

Uncovering Capital Allocation Strategies

Keith Levy, Operating Partner at Sonoma Brands

Every company must have a strong capital allocation strategy to maximize its potential. Without it, the company may end up missing opportunities and spending money on things that won't help it grow or become more profitable.

In this episode of the M&A Science Podcast, Keith Levy, Operating Partner at Sonoma Brands, shares his experience on successful and unsuccessful capital allocation strategies.

Things you will learn in this episode:

• Strategy vs IRR

• Venture capital vs recapitalization strategy

• Minority vs majority recapitalization

• Evaluating exit strategy

This episode is sponsored by the DealRoom

Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://dealroom.net

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Episode Bookmarks

00:00 Intro

11:27 Focusing on organic growth

16:37 Post-merger integration execution

25:01 Strategy vs IRR

26:59 Handling projections

28:07 Integration with Mars

36:20 Role of an operating partner

42:07 Big company vs Small company in M&A

43:39 Venture capital vs recapitalization strategy

48:44 Cashing out from an owner's perspective

50:42 Minority vs majority recapitalization

54:03 Impact of valuations and interest rates on investment decisions

59:07 Timing on investments

1:01:25 Evaluating exit strategy

1:03:46 Advice for practitioners

1:05:41 Craziest thing in M&A

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