Article: The value destruction experts

Boeing's discovery that $3.6 billion of its $13 billion internal investment won't produce significant returns-and that most of it will actually destroy shareholder value instead of improving it-is the result of analysis by Marakon Associates, a little-known consultancy in Stamford, Connecticut, that describes itself as "industrial strength advisers." Set up nearly 21 years ago by a small band of corporate finance experts out of Wells Fargo bank, the firm has only 220 consultants (compared with McKinsey's 4,627).Yet it's winning a big rep in Fortune 500 boardrooms as "the value destruction experts."

Chairman James M. McTaggart, 51, is Marakon's salesman/schmoozer. Chief exec Peter W Kontes, ...

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