Improving Business Performance
Aligning strategy with reality
Optimising shareholder value is the ultimate goal underpinning all decisions an organisation makes about its future. Deciding what to do when a gap appears between strategy and reality is no exception to this rule.
Successfully solving the problem, especially if it requires a major change, needs a robust approach. Whether an organisation or its subsidiaries in question needs to be sold, closed or restructured depends on a wide range of considerations, including:
A long list of business considerations needs to be taken into account when making major changes needed to close the strategy gap.
- How can customer relationships be protected?
- Are there regulatory barriers to closing a business or subsidiary in a particular country?
- What are the likely impacts on reputation and how can these be best managed?
- How can an international business tap into the unfamiliar local market to find a buyer?
- Are in-house management resources available to see the process through from start to finish?
Meeting Your Needs
PwC has developed a comprehensive solution to assist with the process of assessing, planning and executing initiatives to address gaps between strategy and reality. Often this is critical in the post-deal situation when companies seek to realise the synergies of an organisation.
We offer a unique and proven methodology by taking a multi-disciplinary approach that works through three key stages to ensure that analysis and processes are aligned to achieve the goal of optimal shareholder value and, where needed, the early release of funds for reinvestment.
- Identify strategy gaps and determine if they are core to the business
- Assess the available options
- Assemble all relevant information
- Provide independent valuations for any non-core businesses on both trading and asset bases
We recognise that organisations have different needs at different times, so we do not seek to impose a solution. Rather, our professionals – with expertise in performance improvement, business turnaround, tax, real estate, valuation, human resources consulting and strategic planning – work with the client’s management to ensure that assistance can be provided when and where it is required.
PwC can assist at any of the stages identified above, or we can work from the initiation through to the completion of an entire project. The service is designed to fit a business’s exact, and exacting, requirements.
- Agree on what is needed to close the gap between strategy and reality
- Identify resources needed, including time, capital (human and financial) and management
- Assess and manage risks
- Assessing Under-Performing Subsidiary
PwC was appointed by a large corporation to assist them in their decision-making process over the future of an underperforming subsidiary.
We reviewed the financial position of the subsidiary to determine its true position. We then prepared an option analysis and advised our client on the likely impact of the various options available, taking into account:
Our client ultimately chose one of the options presented. Although not the cheapest option, the choice was one that took into account long-term considerations such as business reputation and vendor relationships.
- Company reputation
- Human resource issues
- Legal complications