Hi everyone,
There are many examples where newly appointed CEO’s have engaged in portfolio reviews (which ultimately has led to M&A deals) within the first 2 years of appointment.
My sense is that this is related to the CEO trying to “make his/her mark” as leader of the new company (narrative is always related to exiting lower value businesses and entering more profitable businesses with growth potential).
Are you supportive of this approach? How often do you think the pressure to “get a deal done” results in portfolio repositioning/deals that do not benefit shareholders long-term?
Craig