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Ten Lessons from 20 Years of Value Creation Insights
Report

Ten Lessons from 20 Years of Value Creation Insights


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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

Tensions between managers and shareholders over value creation are an age-old phenomenon, dating back to 1602 and the Dutch East India Company, the first modern corporation. Fueling the ongoing push and pull are differing views on products and services, models, and metrics. While executive and shareholder relations are sometimes adversarial, successful companies tend to integrate investor input into their strategies, according to professionals at the Boston Consulting Group. Their meticulous synthesis of in-depth data on value-creation practices offers solid guidelines to executives and investors navigating 21st-century business challenges. 

Take-Aways

  • Though total shareholder return is a critical measure of success, corporate strategies to build value should rely on more than just metrics.
  • Companies can outperform market expectations for their industries through revenue growth, “margin improvement, cash return and multiple expansion.”
  • Well-organized approaches to mergers and acquisitions can enhance long-term shareholder value.

About the Authors

Gerry Hansell et al. are professionals with the Boston Consulting Group.