In some cases, corporate growth has resembled the growth and movement of an amoeba, pursuing additional basis points of margin improvement without regard to their core strength and offerings. Over time, corporations find themselves with assets and business units that could be making marginal contributions to the overall earnings and value of the enterprise, but when taking into consideration management time and lack of strategic alignment, the business could very well be a net drain on the value of the corporation.
Corporations lack processes to efficiently address non-core businesses and innovations. Divestiture Partners can assist corporations solve this non-core dilemma.
The Strategic Sweet Spot
We believe in order for companies to outpace the competition and reap the subsequent benefits, they must find their strategic sweet spot. The strategic sweet spot is that area where companies use their assets to uniquely serve customers with capabilities that can not be easily duplicated by others. Divesting is difficult for many corporations, but identifying and executing on the strategic sweet spot is critical to business success. Our expertise is in helping clients find and execute on their strategic sweet spot. Having assets in the business portfolio which are not aligned with the focus and direction of the corporation can be a distraction and net reduction to enterprise value.