Specialty growth strategy
Public company needed strategy for diversification beyond core business
Public company with a strong position in its core business but long term risk due to high concentration of corporate margins in one BU. Company wanted to identify new areas for investment (both organic and inorganic) with each having the opportunity for $1 billion or more in profitable revenue within 3 years and needed a compelling strategic logic to take to the street, which was skeptical of “unrelated diversification.”
Nailing down the source of advantage
While the company had a good understanding of how it’s size and national footprint gave it some advantages over its competition, we were able to work with the executive team to develop and articulate the elements of its business model that were both powerful and portable to other sectors. We then used that framework to evaluate several sectors and shortlist four areas. We then evaluated each of those and identifieds specific pathways to getting to scale either through roll-ups, or acquiring an anchor player and growing from there, or by repurposing company assets.
Strategic clarity to drive major growth areas
The strategy was well-received by investors (presented at JPM and other events) and is now being used to evaluate specific areas of investment.