It is very critical to explicitly create an appropriate shareholder value objective...
We work with clients to optimize medium to long-term total shareholder return at both the corporate and business unit levels.
Industry: Transportation
Client: Logistics Operator
Topic: Value Creation Strategy
Client Situation: Our client was a leading logistics operator, was suffering from poor capital market performance, a sluggish stock price and enterprise value earnings before interest, taxes, depreciation, and amortization multiples.
Our company was invited to work with the company to completely restore its capital markets strategy and its approach to investors, and to help it get a better understanding of its key drivers of valuation.
Result: We introduced a value-based management system and implemented a shareholder value system with an emphasis on cash conversion and conservative spending. Even before the announcement of our client new strategy, the company enjoyed an increase in its stock performance.
This increase was influenced to some degree by announcement predictions.
The new capital market strategy created significant impact, with a more than 12 percent market capitalization increase in the first week.