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The value provider business case will be the most strategic business case target, but also the most high-priced business case. Each quadrant in the VBG Matrix presents different key issues. Because these firms have both revenue and value growth below the industry’s average growth rates, these firms require business case. Value Growers will be the optimal targets from a strategic standpoint, being that they are already inside optimal quadrant. Underperformers are generally undesirable acquisitions. On the contrary, they are expensive buys. In assessing an acquisition target, it is important to view the key challenges regarding the management team’s capacity to combat these strategic issues.

After the oOening stage, the is among the most saturated business case toolkit. In Scale, revenues drop slightly on account of consolidation, but stabilize again inside the final two levels. By Balance & Alliance, just about 10% of the companies continue to exist. Smaller companies may be swallowed up, merged, or go out of business. Revenue growth remains relatively stable over the Consolidation Endgame curve. Continuous throughout Scale and Focus, we view an immediate consolidation proces. Due to competitive price pressures, many companies inside Scale stage get into the “profitability trap,” which prevents or severely constraints future growth over the Consolidation curve. Revenue growth is highest in the onset, as companies make territorial claims. Company profitability changes noticeably from each stage to a higher.