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Optimizing Portfolio Returns
Maximizing profitability in a mature business group involves analyzing and potentially divesting subsidiaries with low returns, such as those below a return on equity (R.O.E.) of seven. By divesting underperforming subsidiaries or leveraging them through private equity ownership, the overall group's profitability can be enhanced. This process aims to create a leaner and more profitable business portfolio by focusing on entities with higher returns and growth potential.