Although there are a lot of holdings with businesses portfolios, not all of them are balanced and fit well the shareholders’ expectations. A good portfolio strategy is basically a roadmap that investors can use to reach their financial goals through buying, operating, and selling assets. The roadmap is highly dependent on many factors, including risk averseness, time horizon, amount of profits ready to be reinvested, etc.
We work with clients on:
Articulation of the portfolio strategy. MCG will interview key stakeholders in order to assess how aligned the long-term strategic goals of each party are. Next, the team will work with the client on describing the key characteristics of the desired portfolio strategy. MCG will support the client in justifying and quantifying acceptable ranges for each parameter and compare them with the industry benchmarks and best practices. Finally, a separate document outlining the portfolio strategy as well as the long and short term KPIs for the portfolio will be prepared for the top-management approval.
Overview of the portfolio strategy, improvements recommend and action plans to reach the set goals. If the Client already has the portfolio strategy at place, MCG is ready to review it and suggest ways to improve it. While assessing the strategy, the team will examine portfolio consistency, ROI and ROA for each portfolio element and for the portfolio as a whole, riskiness of the portfolio, etc. Even if the portfolio overall fits the strategy, it could appear that some parts of the portfolio could be substituted for other options with better synergies or ROI effects. Similarly, the result of the diagnostics could be identification of some assets that are detrimental for the portfolio. After the recommendations on keep/ acquire/ divest portfolio elements are agreed upon, MCG will work on planning the implementation of the recommendations.