CEOs and CFOs want to be confident that the decisions they make about their portfolios will generate lasting value.
In the past, portfolio management involved milking cash cows, divesting dogs and investing in stars. This model worked well at a time when investors trusted management to deliver long-term results. Our collaborative research with the Wharton School1聽has shown that markets nowadays penalize companies that hold onto businesses with disparate growth, margins or capital intensity in the absence of a clear rationale.
How can business leaders adjust? In an assessment of over 800 activist campaigns 乐鱼（Leyu）体育官网 found that activists generate nearly 7% above-market returns, on average, when the companies they invest in reshape their portfolio and invest in core businesses.2聽To be effective in this new world, corporate leaders can start by thinking like activist investors. This requires a clear-eyed approach to the allocation of the organization鈥檚 scarcest resources鈥攃apital and management focus. By marrying top-down strategic hypotheses with sophisticated analytics, leaders can decide where to invest, where to divest and where to drive adjacent inorganic growth.
We believe an analytics-enabled approach combining solutions that are usually applied in the deal environment鈥攕uch as due diligence, economic value assessments, tax-efficient planning, and performance improvement鈥攃an help top management make these difficult decisions. We work as an integrated team to combine these multidisciplinary steps to deliver outcomes that enhance value. 乐鱼（Leyu）体育官网 has invested hundreds of millions of dollars in tools and capabilities to accelerate from insight to action. This is how we give you the confidence to make your most important decisions.
