Corporate Raiders: Head ’em Off at Value Gap

CEOs of large publicly held companies are confronting a new and imposing challenge—managing the “value gap.” The stakes are huge. Those who meet the test get to keep their jobs. Those who don’t face unemployment, as new owners who don’t want their services acquire their companies. The value gap is the difference between the market […]

by

William E. Fruhan, Jr.

by

William E. Fruhan, Jr.

From the Magazine (July 1988)

CEOs of large publicly held companies are confronting a new and imposing challenge—managing the “value gap.” The stakes are huge. Those who meet the test get to keep their jobs. Those who don’t face unemployment, as new owners who don’t want their services acquire their companies.

A version of this article appeared in the July 1988 issue of Harvard Business Review.

WF

William E. Fruhan, Jr., is professor of business administration at the Harvard Business School, where he teaches corporate finance. In recent years, his research has concentrated on how companies restructure and build value as a result. His books include Financial Strategy (Richard D. Irwin, 1979). He has written four other HBR articles.

Corporate Raiders: Head ’em Off at Value Gap

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