Business Needs

A private equity-funded, U.S.-based holding group of a half-dozen, IT-focused companies, many acquired, was seeking to leverage the synergies of its capabilities portfolio between companies. 

Solution

In conducting a strategic evaluation, it was determined little synergies existed between most entities, however, several companies demonstrated strong operating margins, ROA, client satisfaction and growth potential for value strategies in their market segments.   

Results

As a result, it was decided to invest in the higher return opportunities that included software and application maintenance companies. Businesses with lower value and margins and little competitive differentiation were divested over two years.