Crescendus™ | Key Management Questions: How to Keep Activist Investors Away!
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ｩ Crescendus™ 2012-2014. All Rights Reserved. 1 Crescendus™ Key Management Questions: How to Keep Activist Investors Away!
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Crescendus™ | Key Management Questions: How to Keep Activist Investors Away! Most companies will face an onslaught from Activist Investors at some point. The odds increase if the company is not performing well. Use this presentation to ask the hard questions internally and adjust your Portfolio and Management Strategy to get ready! This presentation will be useful for Executives and Board of Directors.
Transcript of Crescendus™ | Key Management Questions: How to Keep Activist Investors Away!
© Crescendus™ 2012-2014. All Rights Reserved.1
Crescendus™Key Management Questions: How to Keep Activist Investors Away!
© Crescendus™ 2012-2014. All Rights Reserved.2
Crescendus™ Key Management Questions for CEO & Board
1. Business Portfolio:• How critical is it to have the existing portfolio of businesses within our company?• What are the cross-synergies between the various business units, product and service portfolios?• Do the existing portfolio of businesses offer us leverage over our supply chain?• What are our sales and marketing synergies across the various business units? Does each business unit requirespecialized sales and marketing expertise?• What are our manufacturing, R&D and Operations synergies and benefits between the various business units?• Does our existing portfolio tell a clear and cohesive story or is it so disparate that both customers and investorsdon’t see a clear strategy?• Is our existing portfolio (as a collective unit) making our customers succeed?2. Growth & Profitability:• What is our growth profile across the current business portfolio?• Are all the businesses within +/- 5% revenue growth relative to each other, or are some businesses growingfaster than others?• What is the profit profile of existing businesses and is it increasing yoy?• What is the performance of the various businesses within the market (relative to the competitors)?• Are all our businesses gaining market share and margins relative to the competition?• What is the cost structure for the various businesses?__________________________________________________________________________________________________________________________________________It boils down to the above two topics. If your Business Portfolio (as a unit) generates great growth and profitabilityevery year, then your company and management team is on solid ground and has the right strategy and numbers toface any activist investor onslaught. In these cases, however, it is rare to see any activist investor activity.If your business is not growing relative to your competition, expect plenty of activist investor distractions and pushfor management changes and portfolio breakup/spinoff.
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