However, for BCM to realize the full value of their acquisitions, they will need to focus on implementing leading-class integration strategies that can both mitigate one of the key risks cited by 29% of BCM executives — namely, the integration of operations and people — and maximize the synergies.
Activist shareholders push for portfolio reshaping
Activist shareholders are placing increasing pressure on BCM companies to more frequently assess and reshape their portfolios. Three-quarters of BCM executives say shareholders are compelling them to take action to review and reshape their portfolios, with nearly half (48%) pushing for acquisitions.
In response, BCM companies are stepping up the frequency of their portfolio reviews, with more than half (51%) saying they assess their portfolios every quarter or more. While this is an improvement over previous years, we believe this percentage should be higher. A large number of private equity firms often ask us which non-core assets banks still have to sell. BCM companies have an opportunity to release more value by continually assessing their portfolios and taking a harder look at the profitability ratio of their businesses.