Natural Owner

What is it?

A Natural Owner is the corporate parent that can bring out the most value in a business unit. They do the minimum damage and realize the maximum synergies.

The challenge for multibusiness companies is not only to provide benefits that outweigh any damage done.

They need to be the “natural owners”, able to achieve a more positive balance than any other company. If there are other owners whop can realise a better balance, value will be created by selling the business to them.

The idea of natural ownership, and the term “natural owner,” appear to have been developed by John Stuckey and Rob McLean of McKinsey in the late 1980s in looking at how conglomerates create value.

When is it useful?

An Example?

How do you do the analysis?

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How can you adapt this concept?

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