Starting situation – how to get a family-run business in shape for the capital market?
Our customer, a Middle East retail conglomerate, was about to launch an IPO, and needed to adapt itself to the stricter requirements for a capital market-oriented company. In particular, the medium-sized business management model of this originally family-owned company needed to be replaced by capital market-oriented governance. This was essential in order to maintain an overview of this rapidly expanding company, and to guarantee its ability to act. At the same time, it was particularly important to take into account the interests of the family owners, the employees, and the future shareholders.
Project approach – value-based management as an integrated management concept
value-based management concept based on added value. This concept approach ranged from setting targets for capital allocation, through to remuneration. In this way, it was possible to ensure that all parts of the conglomerate met the same requirements for employment of capital and added value. Ultimately, this enabled us to provide critical support to the conglomerate’s operational and strategic management, and establish capital market confidence in the company.
Finding – value-based management solves the complexity problem
A company’s management system needs to be in line with its future development. Value-based management provides an approach that reduces complexity within the company, and enables transparent, consistent management throughout a conglomerate.
- Capital market-oriented management system developed based on added value
- Management system implemented consistently throughout the conglomerate