Strategic Reviews and Change
Strategy reviews often are triggered by management’s current strategy failing to meet expectations or from a shift in the operating or competitive environment. These are complex moments to engage the market, particularly if investors are unprepared for what management may be contemplating.
Thus, preparation is critical given the high stakes involved and the possibility for big share price gyrations.
Gravitas Advisory has crafted messaging around strategy reviews and changes for very high profile companies in the most challenging times. Successful communication requires a thorough understanding of the market’s perspective, a credible explanation for the drivers of the strategic review and the company’s prospects going forward. Management in particular must be prepared as strategic changes are often a significant test of their credibility.
Restructuring is complicated, often expensive, and usually driven by an operational or strategic failure. Planning and messaging are essential, especially as investors are often expected to absorb large upfront costs in exchange for a future promise of performance.
Gravitas Advisory has been involved in substantial restructuring plans. We understand the stakes for management in announcing a restructuring.
We can advise on crafting a credible narrative that recognizes potential market concerns and strives to address them proactively. We also understand the importance and difficulty of making incremental disclosure decisions to support the restructuring narrative. That is particularly true when it comes to providing guidance and targets, which can be key to support the messaging but risky to management if they fail to deliver.