Value Creation
Creating value in today’s market requires a broader, bolder perspective.
Whatever your business priorities, unlocking new ways to create value is critical. It gives you greater resilience to protect what you’ve got and provides competitive advantage by enabling you to invest in growth.
Overview
In today’s market, how can leaders ensure their deals create value?
Capabilities have always played a pivotal role in business success - but the speed and scope of the changes underway in the wake of the pandemic have escalated their importance even more.
Our latest research analysed the strategic fit of the largest acquisitions over the past 10 years, to show how those based on a capabilities strategy are the best placed to deliver sustained outcomes. Download the report to explore the findings and read about our five steps to maximise value from deals.
Download the Doing the right deals publication here
How we can add value
- Investing to grow
- Divesting and optimising
- Pivoting
- Doing more with what you have
Investing to grow
Businesses that rode out the pandemic strongly have emerged in a good position to build on their strengths. While organic growth can be the right choice for some, for those with a surplus of cash and a healthy balance sheet, acquisition of a promising business is the go-to option for growth.
Divesting and optimising
Companies that are focusing on their core business, selling off anything that no longer fits with the central strategy. It’s an increasingly popular strategy – but doing it well takes care, planning and preparation.
Pivoting
Many businesses were forced to pivot during the pandemic, but pivoting can be about opportunity and not just survival. A true pivot shifts the business to reflect changing customer needs and in doing so creates access to tangible benefits such as revenue growth, increased profitability and a greater market share.
Doing more with what you have
It’s very rare that we see true optimisation in large, complex businesses. More value can always be found, whether it’s through more efficient ways of working, maximising the potential for cross selling, or encouraging greater innovation and collaboration.
What's your value creation story?
We’ve been looking closely at the paths that businesses are taking in their pursuit of growth – and what makes each of these strategies successful. Of course every business has its own unique circumstances, but four broad strategies (which are not mutually exclusive) dominate: investing to grow, divesting and optimising, pivoting, and doing more with what you have.
