SlideShare a Scribd company logo
GCC Family Businesses:
Unlocking Potential
Through Active Portfolio
Management
Since 2008, times have been tough for family
businesses. The antidote: tapping into hidden value.

GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

1
Like families in general, family businesses seem to function relatively well in troubled times.
In fact, many studies show that, in the long run, they perform better than other business models.
Key factors for their ongoing success include a management perspective that emphasizes
the long term, strong brand and family name recognition, and often a strong focus on the
core business.1

Family businesses seem to function
relatively well in troubled times. In fact,
they often perform better than other
business models.
But in the Gulf Cooperation Council (GCC), family businesses are trending in the opposite
direction.2 During the recent crisis, they have been less resilient than the rest of the economy
despite a pre-downturn history of rapid growth and market dominance. Since 2008, the
A.T. Kearney GCC Family Conglomerate Index has decreased by 60 points, while the Bloomberg
GCC 200 Index has decreased by 40 points, a 20-point performance gap (see figure 1).3
After a tough 2008, GCC family businesses rebounded to some extent (as did the market),
but this did not last. As the overall market has trended mostly up, family businesses have
trended downward.

Figure 1
Family businesses in the GCC have struggled since 2008
100
100%

80%

–40%

71
61

60

60%

–60%

40

40%

20%

2008

2009

2010

2011

2012

A.T. Kearney GCC Family Conglomerate Index
Bloomberg GCC 200 Index
Note: 100 basis is January 1, 2008.
Source: A.T. Kearney analysis

	 Credit Suisse Research Institute, September 2012

1

	 The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

2

	 Top 80 listed GCC family-owned conglomerates and top 200 listed GCC companies, respectively

3

GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

2
This might come as a surprise to some, considering the advantages GCC family businesses enjoy.
The biggest advantage is the ability to capture the region’s significant growth via international
partnerships and franchises across multiple sectors, which are reinforced by local regulations, and
exceptional leaders with strong entrepreneurial spirit and intimate knowledge of local markets.
Given these strengths, the question of what is causing GCC family businesses to underperform
deserves a closer look. Families must consider how they can capitalize on their advantages
to recover, and then build on this to recapture stronger performance. Sustainability is crucial,
after all, as many of these businesses are facing increased competition in local markets, pressure
to continue to internationalize their businesses, and challenges associated with generational
transition of leadership and business management.

Portfolio Management Challenges
GCC family businesses are seeing performance recover more slowly than the market for several
reasons. One is the way they’re managing their wide-ranging portfolio of businesses and investments. Most GCC family businesses have a highly diversified, fragmented portfolio (see figure 2).
This contrasts with family businesses in the more mature European and North American markets,
where portfolios tend to be more focused and have clear business platforms. While GCC family
businesses have been extremely successful diversifying, few have implemented systematic,
active portfolio management (see sidebar: Unlocking the Hidden Value on page 4).
Several other issues are creating obstacles to recovery:
Low visibility of the true performance of individual assets and the portfolio as a whole.
Opportunities exist to increase the systematic tracking and visibility of the contribution each
individual business makes to a portfolio’s overall performance. This often goes untracked. Value
creators—and destroyers—must be clearly identified.

Figure 2
Most GCC family businesses have fragmented portfolios
Number of sectors in the portfolio
(%)
38%

Business sectors in the portfolio
(% active in sector)
72%
64%
56%

28%

56%
44%

17%

36%

17%

28%

24%

Transportation

Media

Food and
beverage

Industrial

66% of family
businesses participate
in five or more sectors

Hotel and
leisure

7+

Construction and
engineering

5 to 6

Real estate

3 to 4

Financial
services

1 to 2

Retail and
trading

16%

Note: Based on a sample of 40 major family businesses in the GCC; includes investments
Sources: Zawya, Bloomberg, public company information; A.T. Kearney analysis

GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

3
Lack of clear strategic direction and formalized risk appetite. The development of clear
strategic direction for the businesses, and therefore the investment portfolio, is often not
systematic and inclusive. Discussions around the tradeoff between risk and reward are also
not embedded in the culture. Stringent investment guidelines have not been fully developed,
which results in conflicts among stakeholders about which investment strategies to follow. This
creates a portfolio where assets are accumulated without the structural strength that comes
with a clear investment and divestment rationale, which commonly supports large investors.
Insufficient anticipation of mid-term and long-term trends. Given the region’s rapid growth
in recent history, many family businesses have not felt the pressure to implement processes for
monitoring mid- and long-term market trends or to develop contingency planning to deal with a
downturn in business. As a result, an internal ability to develop foresight and embed it in
strategic planning and risk management is often missing.
Without active portfolio management, several undesirable outcomes emerge:
Fragmentation of capital with limited platform for competitive advantage. Over recent years,
the focus has been on growth, with top-line growth being the priority. Growth in low capitalexpenditure businesses, such as service- or distribution-focused activities (agency arrangements,
for example) has limited the establishment of robust barriers to entry. Many family businesses

Unlocking the Hidden Value
Recent applications of structured
portfolio management with
diversified family-owned
business portfolios in the GCC
show just how much latent value
can be unlocked. A deep look at
regional family business portfolios and the underlying performance at the individual business
level is revealing, with players
falling into one of three categories.
Only about 30 percent of
businesses in the portfolio are
true value creators. This group
contributes the vast majority of
profits (often 70 percent) from
55 to 70 percent of the total
revenues. However, they use only
about 50 percent of the equity
deployed, demonstrating a
less-than-ideal approach to
allocating capital.
The largest bucket of companies,
usually 30 to 60 percent, is the
complexity makers. Often in
non-core segments or somehow
subscale to the value creators,

these businesses tend to be either
historical interests that have not
been actively managed or new
ventures that have yet to reach
maturity. At least some of these
in the latter category will flounder
after a good business opportunity
fails to materialize, often because
of a lack of continued management focus after the initial
investment. Despite their large
numbers, complexity makers
only deliver 25 to 30 percent of
revenues and 25 to 35 percent
of profits. While not unprofitable,
these businesses can have two
negative effects on the portfolio.
The first is the need for capital
investment, as this group tends
to use more capital for smaller
returns than the value creators.
Second, the level of management
attention required to make these
ventures successful could deliver
more bang for the buck if it
focused on continuing to grow
and enhance the strongest
performers. Complexity makers
should be treated with care to

select and cultivate the future
stars, while regularly cleaning
up the others to redeploy financial and business resources for
higher returns.
The value destroyers must be
addressed most aggressively.
These businesses, which have
fallen out of favor either with the
market or management, should
not be allowed to destroy the
good work of the others in the
portfolio. Tackled strongly and
exited or restructured, the
released capital and resources
can provide a quick, valuable
uplift to the overall portfolio.
The potential for unlocking value
is undeniable. Addressing the
underperformers, redeploying
equity to higher-yielding
opportunities, and capturing
latent synergies in the portfolio
can have a tremendous impact.
In fact, applying robust portfolio
management can increase profits
by 10 to 30 percent.

GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

4
face having to build a differentiating industrial platform to compete against new market entrants
and expand into new markets.
Organizational complexity and potentially distracted management. Diversification on
such a large scale often leads to complex organizations, overstretched span of control at the
CEO or chairman level, fragmented management focus, and protracted decision-making
processes—particularly in companies where all strategic decisions are taken by one person,
who is typically the family head.
Erosion of asset value. Unstructured and reactive portfolio management makes it difficult to
effectively review capital expenditures to remain competitive. Hesitating to make decisions
about divestments from value-destroying assets also contributes to sometimes hidden erosion
of portfolio asset value.
Any one of these elements can undermine a portfolio’s potential value and robust performance.
In some cases, portfolio growth is slowed to the point that revenue expansion can no longer
compensate for eroding portfolio profitability. This puts family businesses at great risk, especially
in tough economic times.

Building on Three Pillars
Although many have yet to fully embrace the change, some GCC family businesses are seizing the
opportunity to build sustainable, robust, protected investment portfolios—and they’re doing it by
building on the three pillars of effective portfolio management: performance transparency, investment strategy, and active investment management (see figure 3). Following is a close look at each:
Performance transparency. Portfolios are comprised of assets that deliver widely varied
performances, from outstanding to abysmal. The latter category, however, can go unnoticed
if the portfolio is performing decently as a whole. This happens when portfolio performance

Figure 3
Three pillars can help fortify GCC family business portfolios

Effective portfolio management
Performance
transparency

• Four sets of indicators to assess
the portfolio’s overall performance:
economic, financial, operational,
and strategic
• Comprehensive appreciation of
performance, including competitive
strengths and weaknesses

Investment
strategy

• Clear vision and strategy for the
portfolio with identified, targeted
industrial platforms
• Prioritization of sectors for focus
to support strategy

Active
investment
management

• Investment review
• Active investment value capture
• Investment performance
monitoring

• Investment approach

Source: A.T. Kearney analysis

GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

5
is not effectively monitored. Too often, there’s a focus on aggregate growth, either revenue or
assets, which can obscure a portfolio’s real performance. This is particularly true for GCC family
businesses, which tend to be complex and wide ranging. A clear understanding of overall
portfolio performance—and effective asset management—requires monitoring four elements:
Economic. Provides clarity on investment returns, value creation, and efficiency of resource
allocation. Tracking share price, internal rate of return, return on equity, return on capital
employed, and economic value-added or risk-adjusted returns will help answer questions
such as these: What is the return on investment? How does the added value compare with
the cost of funding? Is there optimum allocation of financial resources for maximum portfolio
return? What is the real return given the level of risk being taken?
Financial. Provides a sense of business potential and financial sustainability. Track growth
in revenue, profit, and earnings before interest, taxes, depreciation, and amortization as well
as margins (both gross and operating), working capital, cash flow, and gearing (debt related
to equity capital). This will generate insights into an asset’s financial viability and potential
contribution to portfolio performance.
Operational. Provides data on an asset’s efficiency. Tracking indicators such as the cost of
goods sold, operational expenditure, employee productivity, and asset productivity can shed
light on the performance and competitiveness of the combined assets.
Strategic. Provides an indication of the robustness of the market positioning and likely
long-term economic and financial contributions. The focus is on private equity investors’
value-creating activities, including the number of interactions and initiatives, and on investee
companies’ market share and performance in key areas of business.

Some GCC family businesses are seizing
the opportunity to build sustainable,
robust, protected investment portfolios.
In short, performance transparency provides the information needed to assess portfolio
strengths and weaknesses, develop investment strategies, and effectively manage assets.
Investment strategy. Historically, many GCC family businesses started and developed as
commercial agents to international companies or as contractors to government projects.
As competition increases, they need to rethink their value proposition. Key to any business’s
success and sustainability is the ability to focus and have a clear value proposition. This is
challenging with just one business, let alone a diverse conglomerate or business portfolio.
But this is precisely where family businesses must develop strong capabilities for long-term
success. Developing a strong investment portfolio, defining the areas of focus, and building
a platform for competitive advantage require a strong investment strategy.
A four-step process can be used to create such a strategy:
First, assess the current positioning and outlook of the business. Honestly articulate the
competitive positioning of the core business. Note the sustainable advantages along with the
weaker elements. In addition to this internal view, analyze the market environment, moving
GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

6
beyond the immediate atmosphere. Garnering an understanding of the long-term trends and
how they might affect the business positioning and market environment is essential.
Once this is clear, it is possible to identify the next set of opportunities. These could be in the
current business and markets or in new areas as a result of changing local market dynamics,
new industrial trends and consumer patterns, or opening and closing of various geographies.
After understanding the playing field and identifying where opportunities may arise, the third
phase of strategy development is to identify which opportunities are worth pursuing. Several
elements need to be considered:
•	 What are the conditions for success, and how can internal strengths be capitalized on to
create competitive advantage?
•	 What long-term value would the opportunity bring to the overall portfolio? Given current
business, which opportunities would strengthen the core for the future? Alternatively, how
would exploring other opportunities that might not be directly complementary provide value by
capturing adjacent emerging trends (or protect against potential negative impacts in the core)?
•	 What are the funding requirements for this expansion to both protect the current
business and capture the new opportunities? (For example, which assets would need
to be divested or restructured?) With this potential portfolio expansion, how can the
risk be managed effectively?
Answering these questions requires reviewing and prioritizing industry-related sectors to build
relevant platforms. It’s important to note, however, that there is no clear-cut answer to the
question of whether to focus or diversify a family business portfolio. The benefits of focus are
as clear for family business portfolios as they are for any other portfolio. However, given that
families in the GCC are often highly exposed to very cyclical businesses such as construction,
a systematic diversification of the business portfolio can reap rewards, for example in the form
of countercyclical revenue streams or as a pillar of effective risk management, spreading
market and credit risk.
After deciding on a strategy, the last step is to determine a targeted investment approach.
Again, answer a few important questions:
•	 What investment capital is available?
•	 What is the tradeoff between investing in current businesses versus in new ventures? What
are the risks and rewards?
•	 What is the best entry mode—organic, acquisition, or partnership, for example—for target
investment opportunities, both for portfolio growth and protection?
An objective assessment of what is needed to be successful in the investment venture and what
current portfolio and management can bring to it is crucial. As the region’s markets become
competitive, family businesses must be able to see the true value of their contribution from the
perspectives of the market and also external partners, particularly international leaders that bring
the core expertise and intellectual property to any partnership. This will enable them to reap the
full rewards of their positioning and lay the foundation for long-term success.
The process must be systematic, consistent, and integrated with portfolio management, with
an objective of being proactive about future portfolio-building opportunities. This also helps
mitigate risk and set the stage for organizational changes that might have to be made.
GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

7
Active investment management. With a clear assessment of the portfolio performance and
investment strategy, active investment management becomes the core engine to generate
value and superior returns. Investments in the portfolio should be managed through three
consistent and systematic processes (see figure 4):
Investment review. Thoroughly assess investment opportunities—whether startups or existing
businesses—to support internal decision making.
Active value capture. Review portfolio performance, develop plans for creating value, and
follow up on turnaround performance. Identify and review other opportunities, including
acquisitions, mergers, and divestments. Follow up on execution and post-deal performance.
Investment performance monitoring. Map current investment activities, and create an
integrated database of relevant investments. Implement key performance indicators, and
employ a mechanism for quantifying and reporting value created and its contribution to
portfolio performance. This is essential to effective management and decision making.
Active investment management requires internal governance and organizational support. Clear
investment guidelines and an investment committee can help ensure the structured application
of investment strategy, portfolio management, and assessment of potential opportunities.
Large family businesses can benefit from forming a dedicated, in-house team with the authority
to do the following:
•	 Manage processes and undertake portfolio analysis
•	 Execute investment processes, either through its own resources or by retaining external
advisors
•	 Investigate performance of the underlying investments to assist decision making by the
investment or management committee

Figure 4
Three processes will help maximize a GCC family business portfolio

• Review new opportunities
(investments and acquisitions)

2. Active value capture
Ac
ti

• Develop action plan and ways to
engage business owners
• Mobilize investment or operations
teams for value capture, and provide
required resources
• Execute action plan (investment in
new business, acquisition, turnaround,
merger, and divestment)

Po

• Design and contribute to portfolio
strategy sector (sector investment
strategy, acquisition, merger, and
divestment strategies)

ws
vie
re

capture
lue
va
ve

• Assess existing investments (for example,
as-is performance and expansion
opportunities), revisit investment
thesis, and refresh value creation

Inves
tm
en
t

1. Investment reviews

r

tf
o
m li o p
o n e r fo r m a n c e
it o
rin g

3. Portfolio performance monitoring
• Track at entity, sector performance, and portfolio levels
• Track operational achievements and value creation versus action plans
• Report information for portfolio management decisions
Source: A.T. Kearney analysis

GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

8
An Indispensable Tool
Entrepreneurial approaches to investment and portfolio management have given family
businesses a competitive advantage for many generations. The experience and maturity built
and transferred through family history have resulted in distinctive management approaches
and superior performance. But while some GCC family businesses have initiated the kind of active
portfolio management described here, many have yet to do so.
If the region’s family businesses are to return to their historically high level of performance,
they must not only grow and sustain their current business, but develop beyond the GCC.
Active portfolio management is an indispensable tool for accomplishing that goal. This transformation will be scrutinized by many stakeholders, especially governments, as the long-term
sustainability and success of these conglomerates are often inextricably linked with entire
economic segments and considerable employment of the local population.

Authors
Cyril Garbois, partner, Middle East
cyril.garbois@atkearney.com

Cyril Gourp, principal, Middle East
cyril.gourp@atkearney.com

Rebecca Hall, principal, Middle East
rebecca.hall@atkearney.com

The authors would like to thank Dr. Abdulrahman Al-Tuwaijri for his valuable contributions to this paper.

GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

9
A.T. Kearney is a global team of forward-thinking partners that delivers immediate
impact and growing advantage for its clients. We are passionate problem solvers
who excel in collaborating across borders to co-create and realize elegantly simple,
practical, and sustainable results. Since 1926, we have been trusted advisors on the
most mission-critical issues to the world’s leading organizations across all major
industries and service sectors. A.T. Kearney has 58 offices located in major business
centers across 40 countries.
Americas

Atlanta
Bogotá
Calgary
Chicago
Dallas

Detroit
Houston
Mexico City
New York
San Francisco

São Paulo
Toronto
Washington, D.C.

Asia Pacific

Bangkok
Beijing
Hong Kong
Jakarta
Kuala Lumpur

Melbourne
Mumbai
New Delhi
Seoul
Shanghai

Singapore
Sydney
Tokyo

Europe

Amsterdam
Berlin
Brussels
Bucharest
Budapest
Copenhagen
Düsseldorf
Frankfurt
Helsinki

Istanbul
Kiev
Lisbon
Ljubljana
London
Madrid
Milan
Moscow
Munich

Oslo
Paris
Prague
Rome
Stockholm
Stuttgart
Vienna
Warsaw
Zurich

Middle East
and Africa

Abu Dhabi
Dubai

Johannesburg
Manama

Riyadh

For more information, permission to reprint or translate this work, and all other correspondence,
please email: insight@atkearney.com.
A.T. Kearney Korea LLC is a separate and
independent legal entity operating under
the A.T. Kearney name in Korea.
© 2014, A.T. Kearney, Inc. All rights reserved.

The signature of our namesake and founder, Andrew Thomas Kearney, on the cover of this
document represents our pledge to live the values he instilled in our firm and uphold his
commitment to ensuring “essential rightness” in all that we do.

More Related Content

What's hot

Moelis Macro Uncertainty Conceals ~55% Upside
Moelis Macro Uncertainty Conceals ~55% UpsideMoelis Macro Uncertainty Conceals ~55% Upside
Moelis Macro Uncertainty Conceals ~55% Upside
Lester Goh
 
2011 global private equity report
2011 global private equity report2011 global private equity report
2011 global private equity report
Grant Thornton
 
Emerging markets - In praise of volatility
Emerging markets - In praise of volatilityEmerging markets - In praise of volatility
Emerging markets - In praise of volatility
Niklas K Amundsson
 
theories merger
 theories merger theories merger
theories merger
Roja M V
 
DealMarket DIGEST Issue 175 // 06 March 2015
DealMarket DIGEST Issue 175 // 06 March 2015DealMarket DIGEST Issue 175 // 06 March 2015
DealMarket DIGEST Issue 175 // 06 March 2015
CAR FOR YOU
 
Looking Inside Scotland’s High Growth Companies
Looking Inside Scotland’s High Growth CompaniesLooking Inside Scotland’s High Growth Companies
Looking Inside Scotland’s High Growth Companies
Chartered Management Institute
 
Lm mme090913
Lm mme090913Lm mme090913
Lm mme090913
Tomasz Waszczyk
 
Enterprise growth during turbulent times
Enterprise growth during turbulent timesEnterprise growth during turbulent times
Enterprise growth during turbulent times
Iliya Rybchin
 
Analysis on the Performance of Technology Companies with Z-score Model
Analysis on the Performance of Technology Companies with Z-score ModelAnalysis on the Performance of Technology Companies with Z-score Model
Analysis on the Performance of Technology Companies with Z-score Model
journalBEEI
 
Financial Times - Weak performance fails to stop gush of new money into hedge...
Financial Times - Weak performance fails to stop gush of new money into hedge...Financial Times - Weak performance fails to stop gush of new money into hedge...
Financial Times - Weak performance fails to stop gush of new money into hedge...
Lisa Krow
 
Merger And Acquisition - Reasons for Failure and Counter Measures
Merger And Acquisition - Reasons for Failure and Counter MeasuresMerger And Acquisition - Reasons for Failure and Counter Measures
Merger And Acquisition - Reasons for Failure and Counter Measures
Aakash Kulkarni
 
Sixfoot4 Shareholder wealth white paper
Sixfoot4 Shareholder wealth white paperSixfoot4 Shareholder wealth white paper
Sixfoot4 Shareholder wealth white paper
Garth Holloway
 
The past present and future of venture capital
The past present and future of venture capitalThe past present and future of venture capital
The past present and future of venture capital
Ying wei (Joe) Chou
 
Us cfo-cfo-insights-strategic-cfos-091213
Us cfo-cfo-insights-strategic-cfos-091213Us cfo-cfo-insights-strategic-cfos-091213
Us cfo-cfo-insights-strategic-cfos-091213
Suab
 
ey-capital-insights-edition-13-q2-2015
ey-capital-insights-edition-13-q2-2015ey-capital-insights-edition-13-q2-2015
ey-capital-insights-edition-13-q2-2015
jwala P
 
Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...
Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...
Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...
Edward Wilson
 
Top M & A mistakes
Top M & A mistakesTop M & A mistakes
Top M & A mistakes
Tony Wayne
 
LP_Perspective_ on Emerging Managers_Report
LP_Perspective_ on Emerging Managers_ReportLP_Perspective_ on Emerging Managers_Report
LP_Perspective_ on Emerging Managers_Report
Tres Moore
 
Corporate Digest Magazine December 2017
Corporate Digest Magazine December 2017Corporate Digest Magazine December 2017
Corporate Digest Magazine December 2017
Kumar Kanaujia
 
Secrets of the Activist Manager
Secrets of the Activist ManagerSecrets of the Activist Manager
Secrets of the Activist Manager
Strategy&, a member of the PwC network
 

What's hot (20)

Moelis Macro Uncertainty Conceals ~55% Upside
Moelis Macro Uncertainty Conceals ~55% UpsideMoelis Macro Uncertainty Conceals ~55% Upside
Moelis Macro Uncertainty Conceals ~55% Upside
 
2011 global private equity report
2011 global private equity report2011 global private equity report
2011 global private equity report
 
Emerging markets - In praise of volatility
Emerging markets - In praise of volatilityEmerging markets - In praise of volatility
Emerging markets - In praise of volatility
 
theories merger
 theories merger theories merger
theories merger
 
DealMarket DIGEST Issue 175 // 06 March 2015
DealMarket DIGEST Issue 175 // 06 March 2015DealMarket DIGEST Issue 175 // 06 March 2015
DealMarket DIGEST Issue 175 // 06 March 2015
 
Looking Inside Scotland’s High Growth Companies
Looking Inside Scotland’s High Growth CompaniesLooking Inside Scotland’s High Growth Companies
Looking Inside Scotland’s High Growth Companies
 
Lm mme090913
Lm mme090913Lm mme090913
Lm mme090913
 
Enterprise growth during turbulent times
Enterprise growth during turbulent timesEnterprise growth during turbulent times
Enterprise growth during turbulent times
 
Analysis on the Performance of Technology Companies with Z-score Model
Analysis on the Performance of Technology Companies with Z-score ModelAnalysis on the Performance of Technology Companies with Z-score Model
Analysis on the Performance of Technology Companies with Z-score Model
 
Financial Times - Weak performance fails to stop gush of new money into hedge...
Financial Times - Weak performance fails to stop gush of new money into hedge...Financial Times - Weak performance fails to stop gush of new money into hedge...
Financial Times - Weak performance fails to stop gush of new money into hedge...
 
Merger And Acquisition - Reasons for Failure and Counter Measures
Merger And Acquisition - Reasons for Failure and Counter MeasuresMerger And Acquisition - Reasons for Failure and Counter Measures
Merger And Acquisition - Reasons for Failure and Counter Measures
 
Sixfoot4 Shareholder wealth white paper
Sixfoot4 Shareholder wealth white paperSixfoot4 Shareholder wealth white paper
Sixfoot4 Shareholder wealth white paper
 
The past present and future of venture capital
The past present and future of venture capitalThe past present and future of venture capital
The past present and future of venture capital
 
Us cfo-cfo-insights-strategic-cfos-091213
Us cfo-cfo-insights-strategic-cfos-091213Us cfo-cfo-insights-strategic-cfos-091213
Us cfo-cfo-insights-strategic-cfos-091213
 
ey-capital-insights-edition-13-q2-2015
ey-capital-insights-edition-13-q2-2015ey-capital-insights-edition-13-q2-2015
ey-capital-insights-edition-13-q2-2015
 
Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...
Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...
Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...
 
Top M & A mistakes
Top M & A mistakesTop M & A mistakes
Top M & A mistakes
 
LP_Perspective_ on Emerging Managers_Report
LP_Perspective_ on Emerging Managers_ReportLP_Perspective_ on Emerging Managers_Report
LP_Perspective_ on Emerging Managers_Report
 
Corporate Digest Magazine December 2017
Corporate Digest Magazine December 2017Corporate Digest Magazine December 2017
Corporate Digest Magazine December 2017
 
Secrets of the Activist Manager
Secrets of the Activist ManagerSecrets of the Activist Manager
Secrets of the Activist Manager
 

Similar to A.T. Kearney: GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

Transforming UAE family business
Transforming UAE family businessTransforming UAE family business
Transforming UAE family business
Browne & Mohan
 
1221365_Citi_Foundation_Sustainable_Inclusive_Business_Study_Web
1221365_Citi_Foundation_Sustainable_Inclusive_Business_Study_Web1221365_Citi_Foundation_Sustainable_Inclusive_Business_Study_Web
1221365_Citi_Foundation_Sustainable_Inclusive_Business_Study_Web
Jess Zhao
 
Fs 2013 appearances_can_deceive_report_singles_lo_res
Fs 2013 appearances_can_deceive_report_singles_lo_resFs 2013 appearances_can_deceive_report_singles_lo_res
Fs 2013 appearances_can_deceive_report_singles_lo_res
Octavia Wolton
 
Article - Innovation-aware-governance an enhanced framework for growth
Article - Innovation-aware-governance an enhanced framework for growthArticle - Innovation-aware-governance an enhanced framework for growth
Article - Innovation-aware-governance an enhanced framework for growth
Danny Davis
 
Agribusiness Financial Ratios
Agribusiness Financial RatiosAgribusiness Financial Ratios
Agribusiness Financial Ratios
Omri van Zyl
 
M02 eiteman0136091008 12_mbf_c02
M02 eiteman0136091008 12_mbf_c02M02 eiteman0136091008 12_mbf_c02
M02 eiteman0136091008 12_mbf_c02
satluy
 
Top Private Company Board Mistakes
Top Private Company Board MistakesTop Private Company Board Mistakes
Top Private Company Board Mistakes
Charles Bedard
 
Deadline 10 Hours Maximum, no extension pleaseNumber of pages .docx
Deadline 10 Hours Maximum, no extension pleaseNumber of pages .docxDeadline 10 Hours Maximum, no extension pleaseNumber of pages .docx
Deadline 10 Hours Maximum, no extension pleaseNumber of pages .docx
simonithomas47935
 
CGMA-Business-partnering-report.pdf
CGMA-Business-partnering-report.pdfCGMA-Business-partnering-report.pdf
CGMA-Business-partnering-report.pdf
CharlesSantos916653
 
Captive Finance Firms in a Challenging EconomyKrueger, Cameron.docx
Captive Finance Firms in a Challenging EconomyKrueger, Cameron.docxCaptive Finance Firms in a Challenging EconomyKrueger, Cameron.docx
Captive Finance Firms in a Challenging EconomyKrueger, Cameron.docx
tidwellveronique
 
Multinational Business Finance 12th Edition Stonehill Solutions Manual
Multinational Business Finance 12th Edition Stonehill Solutions ManualMultinational Business Finance 12th Edition Stonehill Solutions Manual
Multinational Business Finance 12th Edition Stonehill Solutions Manual
FernandezSlade
 
Accenture Study: fast-forward-to-growth
Accenture Study: fast-forward-to-growthAccenture Study: fast-forward-to-growth
Accenture Study: fast-forward-to-growth
Brian Crotty
 
Fast Forward To Growth
Fast Forward To GrowthFast Forward To Growth
Fast Forward To Growth
Colin McKillop
 
Securities Firms and Investment Banks.docx
Securities Firms and Investment Banks.docxSecurities Firms and Investment Banks.docx
Securities Firms and Investment Banks.docx
jeffreye3
 
Securities Firms and Investment Banks.docx
Securities Firms and Investment Banks.docxSecurities Firms and Investment Banks.docx
Securities Firms and Investment Banks.docx
kenjordan97598
 
Bridging growth markets voids web
Bridging growth markets voids web Bridging growth markets voids web
Bridging growth markets voids web
PwC
 
Reinventing the Organization
Reinventing the OrganizationReinventing the Organization
Reinventing the Organization
The RBL Group
 
Corporate governance in india PART 1
Corporate governance in india PART 1Corporate governance in india PART 1
Corporate governance in india PART 1
NIKET PATEL
 
Hanging the shoes in style!!: Planning & Preparing SME family business for p...
Hanging the shoes in style!!:  Planning & Preparing SME family business for p...Hanging the shoes in style!!:  Planning & Preparing SME family business for p...
Hanging the shoes in style!!: Planning & Preparing SME family business for p...
Browne & Mohan
 
Family business transformation
Family business transformationFamily business transformation
Family business transformation
Browne & Mohan
 

Similar to A.T. Kearney: GCC Family Businesses: Unlocking Potential Through Active Portfolio Management (20)

Transforming UAE family business
Transforming UAE family businessTransforming UAE family business
Transforming UAE family business
 
1221365_Citi_Foundation_Sustainable_Inclusive_Business_Study_Web
1221365_Citi_Foundation_Sustainable_Inclusive_Business_Study_Web1221365_Citi_Foundation_Sustainable_Inclusive_Business_Study_Web
1221365_Citi_Foundation_Sustainable_Inclusive_Business_Study_Web
 
Fs 2013 appearances_can_deceive_report_singles_lo_res
Fs 2013 appearances_can_deceive_report_singles_lo_resFs 2013 appearances_can_deceive_report_singles_lo_res
Fs 2013 appearances_can_deceive_report_singles_lo_res
 
Article - Innovation-aware-governance an enhanced framework for growth
Article - Innovation-aware-governance an enhanced framework for growthArticle - Innovation-aware-governance an enhanced framework for growth
Article - Innovation-aware-governance an enhanced framework for growth
 
Agribusiness Financial Ratios
Agribusiness Financial RatiosAgribusiness Financial Ratios
Agribusiness Financial Ratios
 
M02 eiteman0136091008 12_mbf_c02
M02 eiteman0136091008 12_mbf_c02M02 eiteman0136091008 12_mbf_c02
M02 eiteman0136091008 12_mbf_c02
 
Top Private Company Board Mistakes
Top Private Company Board MistakesTop Private Company Board Mistakes
Top Private Company Board Mistakes
 
Deadline 10 Hours Maximum, no extension pleaseNumber of pages .docx
Deadline 10 Hours Maximum, no extension pleaseNumber of pages .docxDeadline 10 Hours Maximum, no extension pleaseNumber of pages .docx
Deadline 10 Hours Maximum, no extension pleaseNumber of pages .docx
 
CGMA-Business-partnering-report.pdf
CGMA-Business-partnering-report.pdfCGMA-Business-partnering-report.pdf
CGMA-Business-partnering-report.pdf
 
Captive Finance Firms in a Challenging EconomyKrueger, Cameron.docx
Captive Finance Firms in a Challenging EconomyKrueger, Cameron.docxCaptive Finance Firms in a Challenging EconomyKrueger, Cameron.docx
Captive Finance Firms in a Challenging EconomyKrueger, Cameron.docx
 
Multinational Business Finance 12th Edition Stonehill Solutions Manual
Multinational Business Finance 12th Edition Stonehill Solutions ManualMultinational Business Finance 12th Edition Stonehill Solutions Manual
Multinational Business Finance 12th Edition Stonehill Solutions Manual
 
Accenture Study: fast-forward-to-growth
Accenture Study: fast-forward-to-growthAccenture Study: fast-forward-to-growth
Accenture Study: fast-forward-to-growth
 
Fast Forward To Growth
Fast Forward To GrowthFast Forward To Growth
Fast Forward To Growth
 
Securities Firms and Investment Banks.docx
Securities Firms and Investment Banks.docxSecurities Firms and Investment Banks.docx
Securities Firms and Investment Banks.docx
 
Securities Firms and Investment Banks.docx
Securities Firms and Investment Banks.docxSecurities Firms and Investment Banks.docx
Securities Firms and Investment Banks.docx
 
Bridging growth markets voids web
Bridging growth markets voids web Bridging growth markets voids web
Bridging growth markets voids web
 
Reinventing the Organization
Reinventing the OrganizationReinventing the Organization
Reinventing the Organization
 
Corporate governance in india PART 1
Corporate governance in india PART 1Corporate governance in india PART 1
Corporate governance in india PART 1
 
Hanging the shoes in style!!: Planning & Preparing SME family business for p...
Hanging the shoes in style!!:  Planning & Preparing SME family business for p...Hanging the shoes in style!!:  Planning & Preparing SME family business for p...
Hanging the shoes in style!!: Planning & Preparing SME family business for p...
 
Family business transformation
Family business transformationFamily business transformation
Family business transformation
 

More from Semalytix

Disruptive Innovationen in der Finanzwirtschaft
Disruptive Innovationen in der FinanzwirtschaftDisruptive Innovationen in der Finanzwirtschaft
Disruptive Innovationen in der Finanzwirtschaft
Semalytix
 
Innovationswellen im Zahlungsverkehr
Innovationswellen im ZahlungsverkehrInnovationswellen im Zahlungsverkehr
Innovationswellen im Zahlungsverkehr
Semalytix
 
The German FinTech Market
The German FinTech MarketThe German FinTech Market
The German FinTech Market
Semalytix
 
Retail in africa still the next big thing
Retail in africa   still the next big thingRetail in africa   still the next big thing
Retail in africa still the next big thing
Semalytix
 
Bip connected risks investing in a divergent world
Bip connected risks investing in a divergent worldBip connected risks investing in a divergent world
Bip connected risks investing in a divergent world
Semalytix
 
Mergers and acquisitions in oil and gas
Mergers and acquisitions in oil and gasMergers and acquisitions in oil and gas
Mergers and acquisitions in oil and gas
Semalytix
 
Over-the-Top Video (OTTv) in the Middle East: How to Win the Market
Over-the-Top Video (OTTv) in the Middle East: How to Win the MarketOver-the-Top Video (OTTv) in the Middle East: How to Win the Market
Over-the-Top Video (OTTv) in the Middle East: How to Win the Market
Semalytix
 
Going Digital: The Banking Transformation Road Map
Going Digital: The Banking Transformation Road MapGoing Digital: The Banking Transformation Road Map
Going Digital: The Banking Transformation Road Map
Semalytix
 
Bip assessment-of-excellence-in-procurement-2014
Bip assessment-of-excellence-in-procurement-2014Bip assessment-of-excellence-in-procurement-2014
Bip assessment-of-excellence-in-procurement-2014
Semalytix
 
About a.t. kearney
About a.t. kearneyAbout a.t. kearney
About a.t. kearney
Semalytix
 
Nutraceuticals: The Front Line of the Battle for Consumer Health
Nutraceuticals: The Front Line of the Battle for Consumer HealthNutraceuticals: The Front Line of the Battle for Consumer Health
Nutraceuticals: The Front Line of the Battle for Consumer Health
Semalytix
 
A.T. Kearney: History of strategy and its future prospects
A.T. Kearney: History of strategy and its future prospectsA.T. Kearney: History of strategy and its future prospects
A.T. Kearney: History of strategy and its future prospects
Semalytix
 
The digital school
The digital schoolThe digital school
The digital school
Semalytix
 
Digital healthcare or bust in america
Digital healthcare or bust in americaDigital healthcare or bust in america
Digital healthcare or bust in america
Semalytix
 
A.T. Kearney: About Us
A.T. Kearney: About UsA.T. Kearney: About Us
A.T. Kearney: About Us
Semalytix
 
Hcl Technologies Annual Revenues-2011
Hcl Technologies Annual Revenues-2011Hcl Technologies Annual Revenues-2011
Hcl Technologies Annual Revenues-2011
Semalytix
 
HCL Technologies Q4-2011- IR Release
HCL Technologies Q4-2011- IR ReleaseHCL Technologies Q4-2011- IR Release
HCL Technologies Q4-2011- IR Release
Semalytix
 
HCL Corporate Presentation April 2011
HCL Corporate Presentation  April 2011HCL Corporate Presentation  April 2011
HCL Corporate Presentation April 2011
Semalytix
 
HCL Eu release Q3 results-final
HCL Eu release Q3 results-finalHCL Eu release Q3 results-final
HCL Eu release Q3 results-final
Semalytix
 
Third Quarter Results FY 2010-11:Investor Release
Third Quarter Results FY 2010-11:Investor Release Third Quarter Results FY 2010-11:Investor Release
Third Quarter Results FY 2010-11:Investor Release
Semalytix
 

More from Semalytix (20)

Disruptive Innovationen in der Finanzwirtschaft
Disruptive Innovationen in der FinanzwirtschaftDisruptive Innovationen in der Finanzwirtschaft
Disruptive Innovationen in der Finanzwirtschaft
 
Innovationswellen im Zahlungsverkehr
Innovationswellen im ZahlungsverkehrInnovationswellen im Zahlungsverkehr
Innovationswellen im Zahlungsverkehr
 
The German FinTech Market
The German FinTech MarketThe German FinTech Market
The German FinTech Market
 
Retail in africa still the next big thing
Retail in africa   still the next big thingRetail in africa   still the next big thing
Retail in africa still the next big thing
 
Bip connected risks investing in a divergent world
Bip connected risks investing in a divergent worldBip connected risks investing in a divergent world
Bip connected risks investing in a divergent world
 
Mergers and acquisitions in oil and gas
Mergers and acquisitions in oil and gasMergers and acquisitions in oil and gas
Mergers and acquisitions in oil and gas
 
Over-the-Top Video (OTTv) in the Middle East: How to Win the Market
Over-the-Top Video (OTTv) in the Middle East: How to Win the MarketOver-the-Top Video (OTTv) in the Middle East: How to Win the Market
Over-the-Top Video (OTTv) in the Middle East: How to Win the Market
 
Going Digital: The Banking Transformation Road Map
Going Digital: The Banking Transformation Road MapGoing Digital: The Banking Transformation Road Map
Going Digital: The Banking Transformation Road Map
 
Bip assessment-of-excellence-in-procurement-2014
Bip assessment-of-excellence-in-procurement-2014Bip assessment-of-excellence-in-procurement-2014
Bip assessment-of-excellence-in-procurement-2014
 
About a.t. kearney
About a.t. kearneyAbout a.t. kearney
About a.t. kearney
 
Nutraceuticals: The Front Line of the Battle for Consumer Health
Nutraceuticals: The Front Line of the Battle for Consumer HealthNutraceuticals: The Front Line of the Battle for Consumer Health
Nutraceuticals: The Front Line of the Battle for Consumer Health
 
A.T. Kearney: History of strategy and its future prospects
A.T. Kearney: History of strategy and its future prospectsA.T. Kearney: History of strategy and its future prospects
A.T. Kearney: History of strategy and its future prospects
 
The digital school
The digital schoolThe digital school
The digital school
 
Digital healthcare or bust in america
Digital healthcare or bust in americaDigital healthcare or bust in america
Digital healthcare or bust in america
 
A.T. Kearney: About Us
A.T. Kearney: About UsA.T. Kearney: About Us
A.T. Kearney: About Us
 
Hcl Technologies Annual Revenues-2011
Hcl Technologies Annual Revenues-2011Hcl Technologies Annual Revenues-2011
Hcl Technologies Annual Revenues-2011
 
HCL Technologies Q4-2011- IR Release
HCL Technologies Q4-2011- IR ReleaseHCL Technologies Q4-2011- IR Release
HCL Technologies Q4-2011- IR Release
 
HCL Corporate Presentation April 2011
HCL Corporate Presentation  April 2011HCL Corporate Presentation  April 2011
HCL Corporate Presentation April 2011
 
HCL Eu release Q3 results-final
HCL Eu release Q3 results-finalHCL Eu release Q3 results-final
HCL Eu release Q3 results-final
 
Third Quarter Results FY 2010-11:Investor Release
Third Quarter Results FY 2010-11:Investor Release Third Quarter Results FY 2010-11:Investor Release
Third Quarter Results FY 2010-11:Investor Release
 

Recently uploaded

Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
valvereliz227
 
CULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for dukeCULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for duke
ZevinAttisha
 
Efficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web ApplicationsEfficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web Applications
Harwinder Singh
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
Operational Excellence Consulting
 
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
BBPMedia1
 
GKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt PresentationGKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt Presentation
GraceKohler1
 
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
dpbossdpboss69
 
State of D2C in India: A Logistics Update
State of D2C in India: A Logistics UpdateState of D2C in India: A Logistics Update
State of D2C in India: A Logistics Update
RedSeer
 
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
Cambridge Product Management Network
 
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
IPLTech Electric
 
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium PresentationKirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip
 
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
ISONIKELtd
 
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
concepsionchomo153
 
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Herman Kienhuis
 
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdfRegistered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
dazzjoker
 
Cover Story - China's Investment Leader - Dr. Alyce SU
Cover Story - China's Investment Leader - Dr. Alyce SUCover Story - China's Investment Leader - Dr. Alyce SU
Cover Story - China's Investment Leader - Dr. Alyce SU
msthrill
 
Virtual Leadership and the managing work
Virtual Leadership and the managing workVirtual Leadership and the managing work
Virtual Leadership and the managing work
IruniUshara1
 
Profiles of Iconic Fashion Personalities.pdf
Profiles of Iconic Fashion Personalities.pdfProfiles of Iconic Fashion Personalities.pdf
Profiles of Iconic Fashion Personalities.pdf
TTop Threads
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
➑➌➋➑➒➎➑➑➊➍
 

Recently uploaded (20)

Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
 
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
 
CULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for dukeCULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for duke
 
Efficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web ApplicationsEfficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web Applications
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
 
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
 
GKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt PresentationGKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt Presentation
 
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
 
State of D2C in India: A Logistics Update
State of D2C in India: A Logistics UpdateState of D2C in India: A Logistics Update
State of D2C in India: A Logistics Update
 
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
 
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
 
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium PresentationKirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
 
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
 
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
 
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
 
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdfRegistered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
 
Cover Story - China's Investment Leader - Dr. Alyce SU
Cover Story - China's Investment Leader - Dr. Alyce SUCover Story - China's Investment Leader - Dr. Alyce SU
Cover Story - China's Investment Leader - Dr. Alyce SU
 
Virtual Leadership and the managing work
Virtual Leadership and the managing workVirtual Leadership and the managing work
Virtual Leadership and the managing work
 
Profiles of Iconic Fashion Personalities.pdf
Profiles of Iconic Fashion Personalities.pdfProfiles of Iconic Fashion Personalities.pdf
Profiles of Iconic Fashion Personalities.pdf
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
 

A.T. Kearney: GCC Family Businesses: Unlocking Potential Through Active Portfolio Management

  • 1. GCC Family Businesses: Unlocking Potential Through Active Portfolio Management Since 2008, times have been tough for family businesses. The antidote: tapping into hidden value. GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 1
  • 2. Like families in general, family businesses seem to function relatively well in troubled times. In fact, many studies show that, in the long run, they perform better than other business models. Key factors for their ongoing success include a management perspective that emphasizes the long term, strong brand and family name recognition, and often a strong focus on the core business.1 Family businesses seem to function relatively well in troubled times. In fact, they often perform better than other business models. But in the Gulf Cooperation Council (GCC), family businesses are trending in the opposite direction.2 During the recent crisis, they have been less resilient than the rest of the economy despite a pre-downturn history of rapid growth and market dominance. Since 2008, the A.T. Kearney GCC Family Conglomerate Index has decreased by 60 points, while the Bloomberg GCC 200 Index has decreased by 40 points, a 20-point performance gap (see figure 1).3 After a tough 2008, GCC family businesses rebounded to some extent (as did the market), but this did not last. As the overall market has trended mostly up, family businesses have trended downward. Figure 1 Family businesses in the GCC have struggled since 2008 100 100% 80% –40% 71 61 60 60% –60% 40 40% 20% 2008 2009 2010 2011 2012 A.T. Kearney GCC Family Conglomerate Index Bloomberg GCC 200 Index Note: 100 basis is January 1, 2008. Source: A.T. Kearney analysis Credit Suisse Research Institute, September 2012 1 The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. 2 Top 80 listed GCC family-owned conglomerates and top 200 listed GCC companies, respectively 3 GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 2
  • 3. This might come as a surprise to some, considering the advantages GCC family businesses enjoy. The biggest advantage is the ability to capture the region’s significant growth via international partnerships and franchises across multiple sectors, which are reinforced by local regulations, and exceptional leaders with strong entrepreneurial spirit and intimate knowledge of local markets. Given these strengths, the question of what is causing GCC family businesses to underperform deserves a closer look. Families must consider how they can capitalize on their advantages to recover, and then build on this to recapture stronger performance. Sustainability is crucial, after all, as many of these businesses are facing increased competition in local markets, pressure to continue to internationalize their businesses, and challenges associated with generational transition of leadership and business management. Portfolio Management Challenges GCC family businesses are seeing performance recover more slowly than the market for several reasons. One is the way they’re managing their wide-ranging portfolio of businesses and investments. Most GCC family businesses have a highly diversified, fragmented portfolio (see figure 2). This contrasts with family businesses in the more mature European and North American markets, where portfolios tend to be more focused and have clear business platforms. While GCC family businesses have been extremely successful diversifying, few have implemented systematic, active portfolio management (see sidebar: Unlocking the Hidden Value on page 4). Several other issues are creating obstacles to recovery: Low visibility of the true performance of individual assets and the portfolio as a whole. Opportunities exist to increase the systematic tracking and visibility of the contribution each individual business makes to a portfolio’s overall performance. This often goes untracked. Value creators—and destroyers—must be clearly identified. Figure 2 Most GCC family businesses have fragmented portfolios Number of sectors in the portfolio (%) 38% Business sectors in the portfolio (% active in sector) 72% 64% 56% 28% 56% 44% 17% 36% 17% 28% 24% Transportation Media Food and beverage Industrial 66% of family businesses participate in five or more sectors Hotel and leisure 7+ Construction and engineering 5 to 6 Real estate 3 to 4 Financial services 1 to 2 Retail and trading 16% Note: Based on a sample of 40 major family businesses in the GCC; includes investments Sources: Zawya, Bloomberg, public company information; A.T. Kearney analysis GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 3
  • 4. Lack of clear strategic direction and formalized risk appetite. The development of clear strategic direction for the businesses, and therefore the investment portfolio, is often not systematic and inclusive. Discussions around the tradeoff between risk and reward are also not embedded in the culture. Stringent investment guidelines have not been fully developed, which results in conflicts among stakeholders about which investment strategies to follow. This creates a portfolio where assets are accumulated without the structural strength that comes with a clear investment and divestment rationale, which commonly supports large investors. Insufficient anticipation of mid-term and long-term trends. Given the region’s rapid growth in recent history, many family businesses have not felt the pressure to implement processes for monitoring mid- and long-term market trends or to develop contingency planning to deal with a downturn in business. As a result, an internal ability to develop foresight and embed it in strategic planning and risk management is often missing. Without active portfolio management, several undesirable outcomes emerge: Fragmentation of capital with limited platform for competitive advantage. Over recent years, the focus has been on growth, with top-line growth being the priority. Growth in low capitalexpenditure businesses, such as service- or distribution-focused activities (agency arrangements, for example) has limited the establishment of robust barriers to entry. Many family businesses Unlocking the Hidden Value Recent applications of structured portfolio management with diversified family-owned business portfolios in the GCC show just how much latent value can be unlocked. A deep look at regional family business portfolios and the underlying performance at the individual business level is revealing, with players falling into one of three categories. Only about 30 percent of businesses in the portfolio are true value creators. This group contributes the vast majority of profits (often 70 percent) from 55 to 70 percent of the total revenues. However, they use only about 50 percent of the equity deployed, demonstrating a less-than-ideal approach to allocating capital. The largest bucket of companies, usually 30 to 60 percent, is the complexity makers. Often in non-core segments or somehow subscale to the value creators, these businesses tend to be either historical interests that have not been actively managed or new ventures that have yet to reach maturity. At least some of these in the latter category will flounder after a good business opportunity fails to materialize, often because of a lack of continued management focus after the initial investment. Despite their large numbers, complexity makers only deliver 25 to 30 percent of revenues and 25 to 35 percent of profits. While not unprofitable, these businesses can have two negative effects on the portfolio. The first is the need for capital investment, as this group tends to use more capital for smaller returns than the value creators. Second, the level of management attention required to make these ventures successful could deliver more bang for the buck if it focused on continuing to grow and enhance the strongest performers. Complexity makers should be treated with care to select and cultivate the future stars, while regularly cleaning up the others to redeploy financial and business resources for higher returns. The value destroyers must be addressed most aggressively. These businesses, which have fallen out of favor either with the market or management, should not be allowed to destroy the good work of the others in the portfolio. Tackled strongly and exited or restructured, the released capital and resources can provide a quick, valuable uplift to the overall portfolio. The potential for unlocking value is undeniable. Addressing the underperformers, redeploying equity to higher-yielding opportunities, and capturing latent synergies in the portfolio can have a tremendous impact. In fact, applying robust portfolio management can increase profits by 10 to 30 percent. GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 4
  • 5. face having to build a differentiating industrial platform to compete against new market entrants and expand into new markets. Organizational complexity and potentially distracted management. Diversification on such a large scale often leads to complex organizations, overstretched span of control at the CEO or chairman level, fragmented management focus, and protracted decision-making processes—particularly in companies where all strategic decisions are taken by one person, who is typically the family head. Erosion of asset value. Unstructured and reactive portfolio management makes it difficult to effectively review capital expenditures to remain competitive. Hesitating to make decisions about divestments from value-destroying assets also contributes to sometimes hidden erosion of portfolio asset value. Any one of these elements can undermine a portfolio’s potential value and robust performance. In some cases, portfolio growth is slowed to the point that revenue expansion can no longer compensate for eroding portfolio profitability. This puts family businesses at great risk, especially in tough economic times. Building on Three Pillars Although many have yet to fully embrace the change, some GCC family businesses are seizing the opportunity to build sustainable, robust, protected investment portfolios—and they’re doing it by building on the three pillars of effective portfolio management: performance transparency, investment strategy, and active investment management (see figure 3). Following is a close look at each: Performance transparency. Portfolios are comprised of assets that deliver widely varied performances, from outstanding to abysmal. The latter category, however, can go unnoticed if the portfolio is performing decently as a whole. This happens when portfolio performance Figure 3 Three pillars can help fortify GCC family business portfolios Effective portfolio management Performance transparency • Four sets of indicators to assess the portfolio’s overall performance: economic, financial, operational, and strategic • Comprehensive appreciation of performance, including competitive strengths and weaknesses Investment strategy • Clear vision and strategy for the portfolio with identified, targeted industrial platforms • Prioritization of sectors for focus to support strategy Active investment management • Investment review • Active investment value capture • Investment performance monitoring • Investment approach Source: A.T. Kearney analysis GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 5
  • 6. is not effectively monitored. Too often, there’s a focus on aggregate growth, either revenue or assets, which can obscure a portfolio’s real performance. This is particularly true for GCC family businesses, which tend to be complex and wide ranging. A clear understanding of overall portfolio performance—and effective asset management—requires monitoring four elements: Economic. Provides clarity on investment returns, value creation, and efficiency of resource allocation. Tracking share price, internal rate of return, return on equity, return on capital employed, and economic value-added or risk-adjusted returns will help answer questions such as these: What is the return on investment? How does the added value compare with the cost of funding? Is there optimum allocation of financial resources for maximum portfolio return? What is the real return given the level of risk being taken? Financial. Provides a sense of business potential and financial sustainability. Track growth in revenue, profit, and earnings before interest, taxes, depreciation, and amortization as well as margins (both gross and operating), working capital, cash flow, and gearing (debt related to equity capital). This will generate insights into an asset’s financial viability and potential contribution to portfolio performance. Operational. Provides data on an asset’s efficiency. Tracking indicators such as the cost of goods sold, operational expenditure, employee productivity, and asset productivity can shed light on the performance and competitiveness of the combined assets. Strategic. Provides an indication of the robustness of the market positioning and likely long-term economic and financial contributions. The focus is on private equity investors’ value-creating activities, including the number of interactions and initiatives, and on investee companies’ market share and performance in key areas of business. Some GCC family businesses are seizing the opportunity to build sustainable, robust, protected investment portfolios. In short, performance transparency provides the information needed to assess portfolio strengths and weaknesses, develop investment strategies, and effectively manage assets. Investment strategy. Historically, many GCC family businesses started and developed as commercial agents to international companies or as contractors to government projects. As competition increases, they need to rethink their value proposition. Key to any business’s success and sustainability is the ability to focus and have a clear value proposition. This is challenging with just one business, let alone a diverse conglomerate or business portfolio. But this is precisely where family businesses must develop strong capabilities for long-term success. Developing a strong investment portfolio, defining the areas of focus, and building a platform for competitive advantage require a strong investment strategy. A four-step process can be used to create such a strategy: First, assess the current positioning and outlook of the business. Honestly articulate the competitive positioning of the core business. Note the sustainable advantages along with the weaker elements. In addition to this internal view, analyze the market environment, moving GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 6
  • 7. beyond the immediate atmosphere. Garnering an understanding of the long-term trends and how they might affect the business positioning and market environment is essential. Once this is clear, it is possible to identify the next set of opportunities. These could be in the current business and markets or in new areas as a result of changing local market dynamics, new industrial trends and consumer patterns, or opening and closing of various geographies. After understanding the playing field and identifying where opportunities may arise, the third phase of strategy development is to identify which opportunities are worth pursuing. Several elements need to be considered: • What are the conditions for success, and how can internal strengths be capitalized on to create competitive advantage? • What long-term value would the opportunity bring to the overall portfolio? Given current business, which opportunities would strengthen the core for the future? Alternatively, how would exploring other opportunities that might not be directly complementary provide value by capturing adjacent emerging trends (or protect against potential negative impacts in the core)? • What are the funding requirements for this expansion to both protect the current business and capture the new opportunities? (For example, which assets would need to be divested or restructured?) With this potential portfolio expansion, how can the risk be managed effectively? Answering these questions requires reviewing and prioritizing industry-related sectors to build relevant platforms. It’s important to note, however, that there is no clear-cut answer to the question of whether to focus or diversify a family business portfolio. The benefits of focus are as clear for family business portfolios as they are for any other portfolio. However, given that families in the GCC are often highly exposed to very cyclical businesses such as construction, a systematic diversification of the business portfolio can reap rewards, for example in the form of countercyclical revenue streams or as a pillar of effective risk management, spreading market and credit risk. After deciding on a strategy, the last step is to determine a targeted investment approach. Again, answer a few important questions: • What investment capital is available? • What is the tradeoff between investing in current businesses versus in new ventures? What are the risks and rewards? • What is the best entry mode—organic, acquisition, or partnership, for example—for target investment opportunities, both for portfolio growth and protection? An objective assessment of what is needed to be successful in the investment venture and what current portfolio and management can bring to it is crucial. As the region’s markets become competitive, family businesses must be able to see the true value of their contribution from the perspectives of the market and also external partners, particularly international leaders that bring the core expertise and intellectual property to any partnership. This will enable them to reap the full rewards of their positioning and lay the foundation for long-term success. The process must be systematic, consistent, and integrated with portfolio management, with an objective of being proactive about future portfolio-building opportunities. This also helps mitigate risk and set the stage for organizational changes that might have to be made. GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 7
  • 8. Active investment management. With a clear assessment of the portfolio performance and investment strategy, active investment management becomes the core engine to generate value and superior returns. Investments in the portfolio should be managed through three consistent and systematic processes (see figure 4): Investment review. Thoroughly assess investment opportunities—whether startups or existing businesses—to support internal decision making. Active value capture. Review portfolio performance, develop plans for creating value, and follow up on turnaround performance. Identify and review other opportunities, including acquisitions, mergers, and divestments. Follow up on execution and post-deal performance. Investment performance monitoring. Map current investment activities, and create an integrated database of relevant investments. Implement key performance indicators, and employ a mechanism for quantifying and reporting value created and its contribution to portfolio performance. This is essential to effective management and decision making. Active investment management requires internal governance and organizational support. Clear investment guidelines and an investment committee can help ensure the structured application of investment strategy, portfolio management, and assessment of potential opportunities. Large family businesses can benefit from forming a dedicated, in-house team with the authority to do the following: • Manage processes and undertake portfolio analysis • Execute investment processes, either through its own resources or by retaining external advisors • Investigate performance of the underlying investments to assist decision making by the investment or management committee Figure 4 Three processes will help maximize a GCC family business portfolio • Review new opportunities (investments and acquisitions) 2. Active value capture Ac ti • Develop action plan and ways to engage business owners • Mobilize investment or operations teams for value capture, and provide required resources • Execute action plan (investment in new business, acquisition, turnaround, merger, and divestment) Po • Design and contribute to portfolio strategy sector (sector investment strategy, acquisition, merger, and divestment strategies) ws vie re capture lue va ve • Assess existing investments (for example, as-is performance and expansion opportunities), revisit investment thesis, and refresh value creation Inves tm en t 1. Investment reviews r tf o m li o p o n e r fo r m a n c e it o rin g 3. Portfolio performance monitoring • Track at entity, sector performance, and portfolio levels • Track operational achievements and value creation versus action plans • Report information for portfolio management decisions Source: A.T. Kearney analysis GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 8
  • 9. An Indispensable Tool Entrepreneurial approaches to investment and portfolio management have given family businesses a competitive advantage for many generations. The experience and maturity built and transferred through family history have resulted in distinctive management approaches and superior performance. But while some GCC family businesses have initiated the kind of active portfolio management described here, many have yet to do so. If the region’s family businesses are to return to their historically high level of performance, they must not only grow and sustain their current business, but develop beyond the GCC. Active portfolio management is an indispensable tool for accomplishing that goal. This transformation will be scrutinized by many stakeholders, especially governments, as the long-term sustainability and success of these conglomerates are often inextricably linked with entire economic segments and considerable employment of the local population. Authors Cyril Garbois, partner, Middle East cyril.garbois@atkearney.com Cyril Gourp, principal, Middle East cyril.gourp@atkearney.com Rebecca Hall, principal, Middle East rebecca.hall@atkearney.com The authors would like to thank Dr. Abdulrahman Al-Tuwaijri for his valuable contributions to this paper. GCC Family Businesses: Unlocking Potential Through Active Portfolio Management 9
  • 10. A.T. Kearney is a global team of forward-thinking partners that delivers immediate impact and growing advantage for its clients. We are passionate problem solvers who excel in collaborating across borders to co-create and realize elegantly simple, practical, and sustainable results. Since 1926, we have been trusted advisors on the most mission-critical issues to the world’s leading organizations across all major industries and service sectors. A.T. Kearney has 58 offices located in major business centers across 40 countries. Americas Atlanta Bogotá Calgary Chicago Dallas Detroit Houston Mexico City New York San Francisco São Paulo Toronto Washington, D.C. Asia Pacific Bangkok Beijing Hong Kong Jakarta Kuala Lumpur Melbourne Mumbai New Delhi Seoul Shanghai Singapore Sydney Tokyo Europe Amsterdam Berlin Brussels Bucharest Budapest Copenhagen Düsseldorf Frankfurt Helsinki Istanbul Kiev Lisbon Ljubljana London Madrid Milan Moscow Munich Oslo Paris Prague Rome Stockholm Stuttgart Vienna Warsaw Zurich Middle East and Africa Abu Dhabi Dubai Johannesburg Manama Riyadh For more information, permission to reprint or translate this work, and all other correspondence, please email: insight@atkearney.com. A.T. Kearney Korea LLC is a separate and independent legal entity operating under the A.T. Kearney name in Korea. © 2014, A.T. Kearney, Inc. All rights reserved. The signature of our namesake and founder, Andrew Thomas Kearney, on the cover of this document represents our pledge to live the values he instilled in our firm and uphold his commitment to ensuring “essential rightness” in all that we do.