Third Point Management
portfolio complexity ideas on closing conglomerate discounts while several companies continue to operate as conglomerates many companies in the us and elsewhere have acknowledged the benefits of a focused portfolio third point has seen countless examples of large conglomerates that struggled until they streamlined their portfolios we observed that the best way to achieve long term success and full value for a company is to fully separate businesses with dissimilar capital intensity and customer bases properly leadership at each business based on the performance of their business articulate clear capital allocation priorities for each business in our experience full spin offs to existing shareholders are the best way to close conglomerate discounts while selling minority stakes to spotlight value has poor results while the of a subsidiary can achieve some of the stated goals of a spin off increases accountability improves performance and aligns incentives the parent company may continue to trade at a substantial discount may actually increase analytical complexity selling a minority stake to a party achieves none of the above objectives and also fails to solve the conglomerate discount problem we would strongly recommend against pursuing minority stake sales to parties finally spin offs are not just for businesses the most successful spin offs are those that are high quality businesses but are within a conglomerate structure long term spin offs shareholders spin off spin offs spin offs high quality | Third Point Management
Company
Deck Type
Sector
Industry
Deck date
June 2019
Slide
16 of 102
Other recent decks by Third Point Management
See all presentations (5 decks)
Activist
October 2018
Activist
July 2018
Activist
April 2014
Activist
September 2011
Search Thousands of Presentations by World Leading Companies
Trending:
Addressable Market
Ecosystem
Beauty Market
WACC
NFT
Management Team
Investment Highlights