The purpose of value-based
management services is to increase a business’ value by setting
new performance targets. For each VBM project, Adams Capital analyzes
the impact of issues including:
 |
Current
business plan for each business unit |
|
Industry
leaders |
|
Alternative
ownership scenarios |
The four phases of VBM
performed by Adams Capital include:
Phase 1 – Current Strategy and
Results
- Determine the current
situation, competitive advantages, and strategies for each business
by working with client to formalize an understanding of the business
- Determine whether individual
business units create shareholder value by assessing the potential
value of each business unit under different operational scenarios
Phase 2 – Opportunity
Identification
- Examine industry trends
impacting each business unit through an intensive research effort
to fully develop an understanding of each industry
- Identify new options
to increase shareholder value based on a complete understanding of
each business unit and its respective industry environment
- Evaluate the attractiveness
and financial impact of each option
Phase 3 – Strategy and
Recommendations
- Prepare revised strategies
for business operations, portfolio/business selection, and corporate
financial policy including a presentation of a detailed implementation
program and an explanation of logic and considerations underlying
recommendations
- Evaluate the impact
of each strategic recommendation in terms of profitability, asset
intensity and cost of capital
Phase 4 – Implementation and
Measurement
- Assist with the adoption
of value-based management initiatives
- Provide independent
third party results analysis and recommendations for further enhancements
Effective VBM requires a commitment from
top management to drive change through the organization to realize the benefits identified
through VBM.
Adams Capital’s professionals are
experts in performing value-based management services. These projects are highly
customized. Please call us to discuss VBM specifics.
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