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Industry : Investment Banking Functional Area : Capital Management
Activity:  2 comments  347 views  last activity : 07 06 2010 20:18:04 +0000
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One of the most challenging task a top executive of a business faces is to maintain & grow portfolio of business that provides maximum returns to an organization.

In today’s environment companies that actively mange their portfolio of business are finding that the traditional method of balancing portfolio like invest free cash flows in more attractive businesses, preferably with synergies to existing ones, and look to build a strong position—often creates little value. Given the breadth and pace of today’s global markets, companies must constantly compete for acquisitions across the world and pay a hefty premium for highly attractive businesses. Often, merely reinvesting free cash flows makes little difference to the portfolio’s value.

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2 comments on "How to maintain maximum return on Portfolio of Business?"
  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 12 30 2009 10:49:31 +0000
Organizations maintain their return on investments by choosing the portfolio components so that the incremental cash flow generated from these new investments has a return on investment equal to or higher than the existing threshold roi of the parent company.
  Commented by  Makrand Bhave, Marketing & MICE, WIZCRAFT INternational    | 12 30 2009 05:01:53 +0000
Amazing blog Deepak. It is very indepth and very informative. I am no wizard at investments and banking, so I would rather take expert help then provide expert opinion!! Thanks ofr the referral though :)
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