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PROFITABLE GROWTH

Identifying optimal growth strategies

Profitable growth is a critical barometer of success for any company and is one of the most important determinants of shareholder wealth creation. A company can improve profitability in the short term through cost reduction initiatives, but will eventually need to meet or exceed investors' growth expectations to generate long-term shareholder value. We know how.

Meeting or exceeding growth targets has been a challenge in this age of economic, political, and technological volatility. With competitive dynamics shifting more rapidly, planning and evaluating growth opportunities must be part of a company's ongoing activities, and not just a formal annual exercise at the corporate level. Managers need to be prepared to identify, evaluate, and implement growth strategies at a much quicker pace.

We have extensive experience and expertise in helping organizations address the key questions and challenges associated with identifying optimal growth strategies:

  • What is the outlook for the company's core markets?
  • What are the sources of the organization's competitive advantage and how can those be leveraged to grow the existing business(es)?
  • How can the organization leverage its strengths to create distinct customer value and differentiate itself?
  • Which customer and/or business segments offer the greatest opportunities for growth? How should the organization prioritize among opportunities to manage the inevitable resource allocation trade-offs?
  • What are the adjacent markets into which the company can expand? Does the company currently have the capabilities necessary to succeed in these new markets?
  • Is growth through acquisition the right strategy for the company? If so, which opportunities offer the best fit with the company's long-term strategy? And, how should the company prepare to become an acquirer?

Identifying, defining, and mapping growth strategies are only a part of the Houlihan Lokey value proposition. We will only promote growth strategies that can be executed successfully by the client organization. Our approach is to organize all of our clients' strategic initiatives into detailed operational plans with key action steps, responsibilities, timelines, and performance milestones. We also work with client management to ensure consensus, agree on the execution roadmap, and address key operational questions up front, such as:

  • What processes need to be in place to enable successful execution? Do we have these processes in place today? Do we have the right people and skills to effectively implement our initiatives?
  • How can the company engage the entire organization around the related tasks of developing and executing on the growth strategy?
  • How can the organization build a performance-driven culture that assigns accountability for growth strategy implementation and, ultimately, success?
  • What are the key milestones for strategy execution, and how do we measure success over time?