This includes prioritizing investments in high-performing, strategically aligned units, while transforming or exiting those that erode value.
Value-based portfolio management sharpens strategic focus and maximizes return on capital – supporting long-term growth, profitability, and shareholder value.
We help companies make strategic investment and divestment decisions that maximize enterprise value. We optimize where and how capital is deployed, ensuring that it flows to businesses, products, or initiatives that generate superior returns on invested capital (EP, ROIC) and align with the organization’s strategic goals and risk appetite.
We assess each business line’s ROIC, cash generation, growth prospects, and risk profile, use tools like Growth-Share Matrix, value maps, or strategic attractiveness matrices
We define the role of each business: Grow, Maintain, Fix, or Exit, determine alignment with corporate strategy (core vs. non-core), assess for non-core businesses potential sale or spin-off oüüortunities, conduct pre-sale value enhancement and buyer positioning.
We set clear criteria for investment based on ROIC, WACC, IRR, payback, or economic profit, develop policies for funding, performance hurdles, and resource prioritization. We improve working capital efficiency and cash redeployment and advise on debt/equity mix and dividend/buyback policy.
We conduct peer and market benchmarking comparing financial KPIs (e.g., ROIC, EBITDA margin, TSR, WACC) against competitors or sector averages, calculate Economic Profit (e.g., EVA, CFROI) and assess performance relative to capital costs, identify value gaps vs. competitors or top quartile performers and link financial and operational metrics to value drivers, report financial and non-financial KPIs aligned with strategy and ensure consistency across internal dashboards and external disclosures.
Long-term incentive programs (“LTIP”) for both top executives and employees is becoming increasingly challenging not least due to numerous technical aspects
