The Value Gap
Where Enterprise Value Gets Lost
Every acquisition. Every AI initiative. Every commercial strategy. Every enterprise-wide transformation. Each begins with a compelling business case. Far fewer deliver the value originally projected.
Real-World Proof
Acquisition Integration
The strategy was sound.
The integration wasn't.
THE VALUE GAP
The Value Gap was commercial, operational and cultural integration.
Quaker acquired Snapple for $1.7B and sold it less than three years later for $300M.
AI + Operating Model
The technology worked.
The operating model didn't.
THE VALUE GAP
The Value Gap was translating technology into disciplined execution.
A sophisticated technology platform outpaced the organization's ability to execute the business model.
Enterprise Integration
The strategy was compelling.
The organization never aligned.
THE VALUE GAP
The Value Gap was aligning leadership, culture and execution behind a shared strategy.
Leadership friction, cultural conflict and integration challenges compounded an already deteriorating market.
Quaker's figure reflects the difference between reported purchase and sale prices rather than a formal accounting loss. Zillow's figure reflects its reported Q3 2021 pretax loss. AOL Time Warner's reported 2002 loss also reflected market conditions and significant accounting write-downs.
Close the Gap
NBS helps leadership teams align strategy, people, culture and execution so investments deliver the returns they were designed to create.
Sources & Context
Robert F. Bruner, Deals from Hell: M&A Lessons that Rise Above the Ashes; Harvard Business Review analysis of Quaker Oats and Snapple; Zillow Group Q3 2021 Financial Results and Zillow Offers wind-down announcement; AOL Time Warner 2002 financial reporting; Wamba-Taguimdje et al., Business Process Management Journal.