The corporate director’s guide to overseeing deals
- Impact Boards EM
- 5 days ago
- 1 min read
Overseeing deals and your company’s portfolio strategy
Having a focused deals strategy is critical to success. Along with organic growth through increased sales and new products and services, growth can also come through acquisitions, mergers, joint ventures and other deals. What’s critical for the board is understanding the ins and outs of the deal and how various transactions a company has done or wants to do are tied together in a portfolio strategy.
The paper highlights key questions directors should ask about their company’s portfolio strategy.
1. Portfolio matrix
How did management determine the classification for each business in the matrix?
How is management addressing any Exit businesses?
Are there persistent underperformers in the Fix category that really should be in the Exit category?
How realistic is it that management will be able to fix those businesses, and what are the key milestones and timelines?
2. Strategic platforms
Are existing and potential strategic platforms – those businesses that will drive growth – clearly identified?
Is there evidence that those businesses have an advantage in the market or can gain an advantage?
Do the markets they participate in have clear headroom for profitable growth?
3. Investment plans
For the strategic platforms, is there a defined investment plan – both organic and inorganic – to sustain and extend their advantages?
Does the investment plan include both financial investments and an analysis to determine whether there is the right talent to drive the growth plan?
Has management identified the type of deals that fit strategically and provided a list of potential acquisitions?
Read the full report below.