The Conglomerate industry in Africa is on the rise. In an emerging market like Nigeria, Conglomerates continue to thrive as businesses are becoming increasingly diversified.
Research indicates that over time, Conglomerates generate better returns than a comparable portfolio of individual companies because they benefit from diversification.
On the other hand, Conglomerates face the risk of becoming too diversified, which could create institutional inadequacies, complexities and inefficiencies as they face increased pressure to be profitable in all their markets. Overtime, Conglomerates may create less shareholder value than focused companies because of poor performance and their inability to sustain their product lines.
We work with our clients to:
- (Re)articulate their corporate and business strategy
- Re-organise the corporate and business unit structure to fill in the institutional inadequacies
- Improve on operational efficiency and effectiveness
- Establish an effective corporate governance, risk and compliance structure and practices
- Strengthen corporate and legal infrastructure requirements