Bridging the Enterprise Value Gap: Strategic Business Optimization
Enterprise value gap closure refers to the strategic process of identifying and bridging the difference between a business’s current value and its desired or potential value. This often involves enhancing operational efficiency, optimizing financial performance, and mitigating risks.
These services are centered on improving financial performance by identifying strategies involving the five economic building blocks of any business;
CASH
- What is the quality of cash generation in the business and what strategies can be implemented to improve cash flow and the cash-to-cash cycle?
- What are the cash needs to support planned growth?
- What alternatives exist for improving working capital and liquidity?
CUSTOMERS
- Who are the “core” customers (20/80), how are we performing in satisfaction & loyalty, and what strategies can be implemented to expand, diversify, and enhance the core business?
- How will we shrink the non-core business to free up resources?
MARGIN
- What is the “core” business (20/80) and how can it be expanded?
- What strategies can be implemented to improve margins in core and non-core segments?
VELOCITY
- What is the efficiency in terms of asset turnover and cycle times?
- What strategies can be implemented to improve both financial and operational efficiency?
GROWTH
- What is the sustainable growth rate?
- What strategies can be implemented to ensure/restore profitable growth, adequate working capital, improved efficiency & solvency while achieving high levels of customer and employee satisfaction?
