FIX–SELL–CLOSE Framework: Reshaping Portfolios And Equity Stories In The Chemical Industry

Executive Summary

The European chemical industry stands at a crossroads. High energy costs, global overcapacity, and tightening regulations have eroded competitiveness – and with it, investor confidence.

The macroeconomic environment remains stagnant: demand is muted, prices are weak, and European production continues to decline — contrasting with modest growth in the U.S. and Asia. A broad-based rebound before 2026 appears unlikely. Recovery will depend less on external momentum and more on management action — driving portfolio focus, cost discipline, and strategic clarity. As a result, portfolio transformation has become not just an operational necessity, but also a narrative imperative.

Boards and management teams must demonstrate decisive, value-driven actions that restore performance, discipline, and credibility.

At A&M, we believe that every strategic decision must serve two purposes:

• Create tangible economic value, and
• Reinforce a credible equity story that investors can understand and believe in.

Our FIX–SELL–CLOSE framework provides a structured, execution-oriented approach to do both – reshaping portfolios and strengthening the story companies tell the market.

Fix what can compete. Sell what creates more value elsewhere. Close what cannot sustain itself.

Each path contributes to restoring credibility, cash flow, and valuation.

The Context: Structural Pressure on European

Europe's chemical sector faces structural headwinds that go beyond cyclical volatility:

The result is depressed earnings, falling valuations, and limited strategic optionality. To regain control, companies must differentiate between what can be fixed, what should be monetized, and what must be exited –using portfolio discipline not only to improve operations but also to reshape market perception.

FIX–SELL–CLOSE Framework

The A&M FIX–SELL–CLOSE framework helps leadership teams clarify where to act and how.Not all assets share the same destiny —but every decision can strengthen both performance and perception.

Typical A&M levers include:

• Commercial excellence 
  Implement data-driven pricing and product-mix optimization, linking decisions directly to feedstock and energy price dynamics.
• Active margin management
  Create visibility into actual and forward-looking product profitability; enforce "value over volume" discipline across customers, products, and regions.
• Procurement excellence
  Drive direct and indirect savings through category management, active supplier renegotiation, demand control, and strategic sourcing.
• Operational performance
  Improve yield, throughput, and asset utilization; reduce downtime and maintenance spend primarily via advanced planning scenarios and capabilities.
• Digital and process efficiency
  Leverage AI and advanced analytics to optimize planning, energy use, maintenance, and working-capital decisions
• Structural and organizational adjustment
  Simplify governance layers, consolidate functions, and align SG&A with more efficient processes and business models
• Performance governance
  Establish meaningful and lean dashboards, KPIs, and daily control routines linking operational drivers to financial results.

Outcome: Sustainable improvement in cash contribution, reduced volatility, and restored self-funding capability. A&M helps clients unlock latent operational value – turning cost pressure into cash-generation potential.

Equity-story impact: Demonstrates operational control and commercial discipline. Strengthens investor confidence through visible EBITDA and cash-conversion improvement, reinforcing the credibility of management execution.

Typical A&M levers include:

• Unconstrained margin targeting
  Establishing clear margin profiles for a site, business, or product line.
• Value-creation planning
  Building a defensible equity story that combines Fix-driven improvements with an unconstrained perspective of performance potential under new ownership.
• Buyer-universe qualification
  Identifying responsible, long-term owners best positioned to sustain and expand the business's value.
• Stakeholder stewardship
  Ensuring continuity and trust across employees, customers, and suppliers as a central criterion in the sale approach.
• Equity story and positioning
  Crafting a differentiated business narrative that highlights market relevance, performance resilience, and growth potential.
• Separation readiness
  Designing and executing clean carve-outs and transition frameworks to minimize disruption across operations and the value chain.

Outcome: Optimized capital redeployment, sharper focus, and strategic clarity – signaling active ownership and disciplined capital allocation.

Equity-story impact: Reinforces the message that management is prioritizing value creation over volume and acting as a responsible portfolio owner. It demonstrates to investors that the company identifies where others may capture greater value and shows the potential to monetize such assets responsibly, managing exits with integrity and accountability to all stakeholders.

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Originally published 11 November 2025

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