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"In the current economic climate, well-positioned companies can achieve a decade’s progress in two years. The question, therefore, is how to be one of the winners."
Mark Thomas, author of surviving and thriving in the economic crisis, PA consulting group

Creating £500million of shareholder value for a leading global engineering group

PA Consulting Group worked with the CEO and Executive team of this large UK plc, alongside one of the world's largest investment banks, to develop a new corporate and ownership strategy. PA's role was to recommend an overall portfolio strategy for the group based on a detailed understanding of the future prospects of each of the businesses, while the bank was to recommend the financing and ownership strategy which would best enable execution of the portfolio strategy.

After a detailed and rigorous assessment of each of the businesses and their major competitors, a comprehensive financial review and an assessment of the drivers of future market profitability, PA identified which of the businesses had the potential to create value and, importantly, which did not and which were at highest risk. 

This diagnosis has since proven remarkably accurate.  Following an assessment of the way that the Group interacted with its component businesses, we concluded that the highest value option was a separation of two key parts of the business, coupled with a change in parenting style to drive cost-reduction aggressively from the centre -- we identified $100m per annum of potential for cost reduction, which has subsequently been realised.

To find out more about our work in this area, contact us.