Our client, one of the world’s largest security services companies, began life as a small security and emergency services provider in Europe.
Under the leadership of a visionary CEO – and supported closely by PA’s expert team – they started to explore the concept of ‘managing for shareholder value,’ using this as a way to refine and sharpen their strategic focus.
An initial analysis of operations showed which parts of the business generated most shareholder value. The company then focused on understanding how this value was created in each area. The results revealed many surprising and highly productive findings – all of which played a crucial part in the reorientation of the business focus.
Most notably, the company realised that an astonishingly large part of their business’ total value was constituted by the brand – and this held important practical implications for the company’s international expansion plans. Previously they had seen their efficient business model as a key competitive advantage, which they planned to transfer to new markets, but now they realised they had to challenge their approach. They recognised that they could not simply transplant their operations into a commercial environment where their brand was not known and expect to achieve overnight success. Instead, they looked to acquire businesses that already had strong local brands as their key growth vehicle.
This change in approach reshaped the entire security services industry. Our client is now represented on several continents and hires tens of thousands of employees. They are a multi-billion dollar business and have seen their revenue grow by over 50% year-on-year.