In order to remain competitive operators need to 1. Focus on growth, and 2. Focus on EBITA and cash flow. Across the industry, there’s a growing awareness that partnerships - if implemented and used in the appropriate way - can help operators meet both of these sets of challenges.
However, the challenges of identifying, forging and leveraging the right partnerships are increased by the varying forms that partnerships can take. The options range from full M&A to equity participation, from joint ventures to supply relationships, and from R&D collaboration to licensing. Each of these approaches lends itself to different levels of financial participation and process integration, widely differing management models, and the achievement of different objectives. So the challenge is deciding not just who to partner with, but why and how.
PwC can help
PwC’s solution for helping operators forge more successful partnerships is grounded in our understanding of the common pitfalls that can undermine and limit the effectiveness of partnerships. To neutralize these pain-points and avoid the related pitfalls, PwC’s approach involves helping implement a more robust management framework for operators’ partnerships models.