Strategic Consulting for Value Creation
Corporate finance is an important discipline in the development, guidance and execution of corporate strategies. BCG increasingly has become a partner of choice in designing and implementing holistic value-creation strategies, as well as providing world-class financial consulting services. At the center of BCG’s financial and value-creation services is its proprietary Smart MultipleTM brand.
BCG’s Smart Multiple brand of consulting services consist of an innovative approach to assist companies in creating sustainable, long-term shareholder value through the development of a uniquely tailored value creation strategy. The consulting services offered under the Smart Multiple brand are unique in that they provide in-depth insight into what institutional investors believe will increase or decrease the valuation of the company.
BCG’s Smart Multiple services provide a unique and high value consulting solution, which assists clients in identifying and assessing company-specific drivers of valuation from interviews and empirical data, benchmarking the results against those of “investment” peers, and provides a practical strategy to capitalize on existing sources of value, and to improve any underperforming areas.
BCG’s Smart Multiple consulting services incorporate a multifaceted strategic approach to value-creation comprised of tools, processes, valuation equations, and above all, expert consulting advice. Using the Smart Multiple consulting services, BCG associates will work closely with leading company executives to develop sharply defined and closely aligned business, financial, and investor plans to optimize total shareholder return. The plans developed through the Smart Multiple brand of consulting services encompass operational metrics and goal setting, identifying merger and acquisition targets with PMI goals to make them accretive in value, financial engineering, budgeting, and reporting to assist the role of the finance organization.
To create an individualized strategy, BCG conducts in-depth internal investigations into a company’s operations at the business unit level, taps an extensive database of institutional investor interviews, and provides an analysis of competitor performance and value. If management desires, this extends to interviews with key existing and potential shareholders. Results drive “behavioral econometric” algorithms that translate actual financial data about the company and companies consider “investment peers” into quantitative tradeoffs across growth, profitability, financial leverage, risk factors, dividends and share repurchases.
As an outcome of the Smart Multiple consulting services, executives are able to understand how the company’s performance is measuring up to its objectives, shareholder expectations, against its peers in the marketplace.
Most important is the future: The company’s alternative plans and M&A targets are modeled using the results to model the best total shareholder returns. For a company that plans acquired growth, the value of its common equity is the foundation of currency to acquire: equity, debt capacity, cash availability. The Smart Multiple consulting services can lead to competitive advantage in this currency.
Using this information, BCG provides a tailored strategy, to align the company’s goals to the best potential results. Through the Smart Multiple brand of consulting services, companies are able to effect meaningful and lasting change that can lead to long-term value creation.