You can sometimes develop discrete measurements of what a company’s intrinsic value might be under different operators by conducting due diligence for a merger or acquisition. But even in the absence of a potential transaction, you should still assess the hypothetical intrinsic value of your businesses if they were operated by someone else. This can help you establish strategies that maximize value. If one of your businesses does not fit well with your capabilities system, but has high value creation opportunities, a sale to a more optimal operator that is willing to pay for those opportunities would be a value-maximizing decision.
Content: Quotation
Authors: Aaron Gilcreast, Larry Jones
Source: strategy+business
Subjects: Finance, Management, Strategy
Authors: Aaron Gilcreast, Larry Jones
Source: strategy+business
Subjects: Finance, Management, Strategy
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