Shareholder Value Management
L.E.K. Consulting's value creation methodology explicitly links management strategies to the returns they generate for shareholders. Over the past 30 years, we have been a pioneer in developing the set of tools that senior executives require to enhance value at all levels of the organization and ensure that management actions are consistent with long-term value creation. Our services include:
- Business valuation: Determine the value of business units to understand where value is created and where it is destroyed. Economic valuation is also utilized to measure the financial impact of different strategic scenarios and market changes on company value.
- Value-based management: Develop and institute processes that align strategy with value creation, while establishing performance metrics and key performance indicators (KPIs) throughout the business that embed value management discipline across the organization.
- Financial strategy: Create and implement the appropriate capital structure to support company operations. This also includes determining how to finance the company or extract excess cash from the business to enhance shareholder value.
Examples of our work
Our shareholder value management expertise is built on our 1993 acquisition of The Alcar Group, Inc., which was founded by Dr. Alfred Rappaport, who pioneered the concept of managing for value creation and authored the book "Creating Shareholder Value" in 1986.
In addition to our shareholder value management expertise, L.E.K. is also a trusted authority in Mergers & Acquisitions (M&A) for corporations and Private Equity (PE) companies, and is a leading provider of due diligence and portfolio company value enhancement to the PE community.