Corporate Portfolio Strategy

The Client

A major multinational conglomerate (one of the world’s 25 largest companies) operating businesses globally in a multitude of industries, including IT, Aerospace, Machinery, Textiles, Healthcare, Automotive, Foods, Financial Services, Security and Branded Consumer Products.

The Challenge

Following the successful turnaround of one of this client’s largest US subsidiaries, HighQuest was asked by the US Divisional CEO to assist in defining corporate and business level strategies in three major industry segments in the US market. Having been focused on performance improvement and turnaround through the years 2001 to 2003, this client was now engaged in defining the market segments and strategies that should be pursued to achieve profitable growth. Operating 25 subsidiaries in the US market, the CEO wanted to understand first and foremost what capabilities already existed within the organization and how those capabilities could be leveraged into each of the three target segments. Secondly, the CEO wanted to explore what other strategies could be employed to make significant strategic inroads into the target segments. Thirdly, to the extent that acquisitions would fit into the strategy, the client wanted deal sourcing assistance and buy-side advice to help them execute such deals.

The Solution

HighQuest assembled a highly competent team with experience in the relevant industries, in corporate and business level strategy as well as mergers & acquisitions. First, the team embarked on a detailed study of each of the relevant market segments to provide the necessary insights into market size and shape, the competitive landscape and the overall segment attractiveness. As part of the exercise, the critical success factors were identified and thoroughly researched. Secondly, the team carried out a detailed study of the core capabilities within the current portfolio of businesses/subsidiaries. A number of quick hit opportunities were identified and immediately executed with the assistance of and facilitated by the HighQuest team. As the strategic objectives, desired position, and the strategies were developed and defined, the team researched the market for attractive acquisition candidates which possessed a strategic fit and satisfied other corporate criteria and hurdle rates. HighQuest recommended and delivered to the client a set of attractive strategic scenarios that could be pursued. The HighQuest team also defined acquisition candidates that would help the client achieve its desired strategic position in each of the segments.

The Results

The quick hit opportunities added significant and immediate value to the client, both in terms of creating synergies across subsidiaries and with improving their overall strategic position. HighQuest continues to work with the client on a number of specific M&A opportunities. The project has so far achieved significant benefits in terms of generating short term revenue growth, improving strategic position and building very significant strategic momentum, both internally and externally.