Inside the Strategy Room cover image

140. The ten rules of growth

Inside the Strategy Room

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What Does the Pruning Back Do for the Company That Does It?

A company local here to Australia divested their one division, which was half of their revenue. And now they're worth more than they were before they divested it. Because instead of one company that had okay growth, they've created two value-creating companies. There's definitely the financial benefits and the ability to reinvest when you divest - but there's also a human capital benefit as well.

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