Too many businesses, too little growth.
The group had grown through fifteen acquisitions into seven business units, from payroll software to on-premise licences. Revenue was flat, the share price had lagged its peers for three years and an activist investor had built a 4.6% stake.
- 7business units in the portfolio
- +1%annual revenue growth over three years
- 4.6%stake held by an activist investor
Management believed in every unit, and each had a sponsor on the executive team. The board needed an outside view that tested every business on the same terms — growth, margin, capital needs and fit with the subscription platform.
It also needed the work done quietly, before the activist’s next public letter set the agenda for it.
Value every unit on the same terms.
Two partners worked directly with the chair and the CEO, with a small board committee meeting every three weeks.
- 01
Review unit by unit
We built a standalone value case for each of the seven units and tested it with their leadership teams.
- 02
Map the buyers
We identified 34 strategic and financial buyers for the two units that fitted least, and the price each could pay.
- 03
Make the case for focus
We wrote the board paper and investor narrative for a subscription-first group, with the proceeds reinvested in the platform.