AssetMaster* had great potential, but stagnant profits. The company needed a clear corporate vision to maximize value for its shareholders.
AssetMaster is an integrated global wealth management company that operates several distinct businesses, including an asset management operation and a private banking business.
Recently, the asset management unit has had declining profitability. At the same time, private banking, though highly profitable, was ignoring untapped potential.
AssetMaster's management believed that a few critical factors were causing these performance problems:
- Untapped synergies between business units
- Underpenetration of core markets
- No clear private banking strategy
- Dysfunctional and poorly defined organization
AssetMaster asked the Bain team to help improve its profits and fix underperforming asset growth by reviewing the company's integrated business strategy.
Bain conducted a comprehensive review of AssetMaster's businesses and developed an implementation plan for a new strategy.
By selling the asset management business, AssetMaster could focus its resources on developing the full potential of the private banking unit - and maximizing shareholder value.
AssetMaster's shareholders gained significant value through the new strategy: the company outpaced the market index by $750 million in six months.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.