4)Realign the financial objectives
Virgin needs to address its financial weaknesses. Companies that do not have a profitable future need to be discontinued without adversely affecting the brand image. Continuous cross subsidising of failing ventures can ultimately weaken the Virgin Group. The disintegration of Virgin should Branson depart is a real threat, especially since Virgin is substantially owned by Branson's offshore family trusts. It is difficult to envisage the Branson trust continuing its involvement in Virgin, given that active family involvement would be required. It is more likely that individual companies would be sold to the highest bidder, and maybe even a purchaser for the brand would be sought. It is for this reason that Virgin may need to consider an initial public offering of its shares. The main advantages of an IPO are a greater access to capital markets and a greater market drive (i.e. profit and growth oriented).
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