The fundamental reason behind the Strategic Asset Management Firm’s growth and high rates of return is something that has received high attention, perhaps because it’s so obvious: the firms’ standard practice of buying businesses and then, after steering them through a transition of rapid performance improvement, selling them. The success of the firm can be attributed to this strategy, which combines business and investment-portfolio management.
However, as Strategic Asset Management firms have shown, the strategy is ideally suited when, in order to realize a onetime, short- to medium-term value-creation opportunity, buyers must take outright ownership and control. Such an opportunity most often arises when a business hasn’t been aggressively managed and so is underperforming. It also exists in companies that are undervalued because it is difficult to see their potential. In those cases, once the changes necessary to achieve the uplift in value have been made—usually over a period of two to six years—it makes sense for the owner to sell the business and move on to new opportunities.
This highly appreciated business model of asset acquisition, afterwards Selling them and monetization required very high level of following expertise:
KPM ASSET brings its global expertise and ensures that its business identification and evaluation process is robust and matches the standard criteria of asset acquisition. The Buy-out strategy is designed as per the pre-defined gap analysis process and future growth possibilities of the asset. Since last two decades, KPM ASSET’s best expertise are well appreciated in the industry for:
In the Strategic Asset Management practice the ‘three-p’ combination plays a major role, where KPM ASSET has expertise to bring in all the partners (Investment Partner, Corporate Partner & Asset Management Partner) together and provide 360 degree support eco-system to make the transaction smooth and most profitable within the targeted time span.
Target identification and fit Analysis is one of the most important aspect during any Asset acquisition process. A predefined business assessment and growth analysis framework needs to be followed during target business acquisition selection....
Once the Target is finalized, the buying process and Financing needs to be planned very cautiously. The combination of Capital investment and utilization of debt or instruments are very key factors which should be taken into consideration during the initial phase of acquisition…
Post Acquisition, financial reengineering and structuring are the two combination, which will add substantial value optimization to the asset and way to achieve the best monetization. Corporate structuring, Brand positioning, introduction to new business segment etc. are the key exercises been followed during the structuring process ….
Strategic Asset Management reaps threephases of monetization benefit. short, mid & long-term profitability. The uplift in value can be added by steering the undervalued business segments and once the desired growth achieved, certain segments needs to be hived-off & partially monetized and rest will be nurtured for the long-term value creation….