As a business leader, you’re constantly looking for ways to maximize shareholder value—as quickly as possible. The Executive Guide to Boosting Cash Flow and Shareholder Value outlines a practical, effective, and innovative framework for achieving this goal, using established management tools to find and exploit high-value Profit Pools. With this book as your guide, you’ll quickly discover how to unlock large untapped sources of cash flow, and achieve the mandate that comes with modern business leadership.
Economist, consultant, and Wall Street Journal contributor Alfred Rappaport provides managers and investors with the practical tools and tests for a corporate strategy that creates shareholder value. The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. After a decade of downsizings frequently blamed on shareholder value decision making, this book presents a new and indepth assessment of the rationale for shareholder value. Further, Rappaport presents provocative new insights on shareholder value applications to: (1) business planning, (2) performance evaluation, (3) executive compensation, (4) mergers and acquisitions, (5) interpreting stock market signals, and (6) organizational implementation. Readers will be particularly interested in Rappaport's answers to three management performance evaluation questions: (1) What is the most appropriate measure of performance? (2) What is the most appropriate target level of performance? and (3) How should rewards be linked to performance? Through the lens of high-stakes case studies, like the notable acquisition of Duracell International by Gillette, Rappaport dissects the intricate decisions and risks inherent in the merger and acquisition process. The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide. Brilliant and incisive, this is the one book that should be required reading for managers and investors who want to stay on the cutting edge of success in a highly competitive global economy.
An accessible guide to the essential issues of corporate finance While you can find numerous books focused on the topic of corporate finance, few offer the type of information managers need to help them make important decisions day in and day out. Value explores the core of corporate finance without getting bogged down in numbers and is intended to give managers an accessible guide to both the foundations and applications of corporate finance. Filled with in-depth insights from experts at McKinsey & Company, this reliable resource takes a much more qualitative approach to what the authors consider a lost art. Discusses the four foundational principles of corporate finance Effectively applies the theory of value creation to our economy Examines ways to maintain and grow value through mergers, acquisitions, and portfolio management Addresses how to ensure your company has the right governance, performance measurement, and internal discussions to encourage value-creating decisions A perfect companion to the Fifth Edition of Valuation, this book will put the various issues associated with corporate finance in perspective.
The purpose of this book is to explain Free Cash Flow and how to use it to increase investor return. The author explains the differences between Free Cash Flow and GAAP earnings and lays out the disadvantages of GAAP EPS as well as the advantages of Free Cash Flow. After taking the reader step-by-step through the author's Free Cash Flow statement, the book illustrates with formulas how each of the four deployments of Free Cash Flow can enhance or diminish shareholder return. The book applies the conceptual building blocks of Free Cash Flow and investor return to an actual company: McDonald's. The reader is taken line-by-line through the author's investor return spreadsheet model: (1) three years of McDonald's historical financial statements are modeled; (2) a one-year projection of McDonald's Free Cash Flow and investor return is modeled. Five other restaurant companies are compared to McDonald's and each other using both Free Cash Flow and GAAP metrics.
Moving beyond the strategies that managers have employed to create shareholder value, three corporate finance experts reveal their powerful framework for the systematic day-to-day management of shareholder value. They also dispel many of the "value myths" that can skew a company's strategy.
Begins with dramatic proof of the shortcomings of accounting numbers as earnings per share, return on investment, and return on equity, and explains to develop value-creating business strategies and how to ...
In a business climate marked by escalating global competition and industry disruption, successful mergers and acquisitions are increasingly vital to the growth and profitability of many corporations. If history is any guide, 60 to 70 per cent of new mergers will fail – and will destroy shareholder value. To date, analyses of the M&A failure rate tend to focus on individual causes – e.g., culture clashes, valuation methods, or CEO overconfidence – rather than examining the problem holistically. The Value Killers is the first book based on a holistic analysis of successful and unsuccessful transactions. Based on research, interviews with top executives, and case studies, this book identifies the key causes of failures and successes and offers prescriptions to increase the odds that future transactions will deliver all the anticipated synergies. The Value Killers offers practical advice in the form of 5 Golden Rules. These rules will help managers and boards to ensure that target companies are properly valued; potential synergies and risks are identified in advance; checks and balances are installed to make sure that the pros and cons of the transaction are rationally and objectively evaluated; mechanisms are created that will trigger termination of bad deals; and obstacles to successful post-merger integrations are assessed (and solutions developed) before the deal closes. Each chapter includes questions for executives considering future M&As to allow them to see whether they are on the right track or not.
Provides the tool necessary to determine and evaluate the effectiveness of a corporation's management of cash. Examines how operational activities can affect cash flow management. Shows how effective cash flow management can improve corporate performance and increase shareholder value. Provides an overview of cash management techniques.
The number one guide to corporate valuation is back and better than ever Thoroughly revised and expanded to reflect business conditions in today's volatile global economy, Valuation, Fifth Edition continues the tradition of its bestselling predecessors by providing up-to-date insights and practical advice on how to create, manage, and measure the value of an organization. Along with all new case studies that illustrate how valuation techniques and principles are applied in real-world situations, this comprehensive guide has been updated to reflect new developments in corporate finance, changes in accounting rules, and an enhanced global perspective. Valuation, Fifth Edition is filled with expert guidance that managers at all levels, investors, and students can use to enhance their understanding of this important discipline. Contains strategies for multi-business valuation and valuation for corporate restructuring, mergers, and acquisitions Addresses how you can interpret the results of a valuation in light of a company's competitive situation Also available: a book plus CD-ROM package (978-0-470-42469-8) as well as a stand-alone CD-ROM (978-0-470-42457-7) containing an interactive valuation DCF model Valuation, Fifth Edition stands alone in this field with its reputation of quality and consistency. If you want to hone your valuation skills today and improve them for years to come, look no further than this book.
EXECUTIVE CORPORATE FINANCE "One of the more comprehensive books available covering corporate finance and related managerial discussions, this book explains financial concepts in an easy to understand manner. The real life examples enliven the discussion, illustrating the central concepts, and one of the strongest aspects is the depth of the explanations by Samir Asaf. It should serve as a reference for CEOs and CFOs. John Mulvey, Professor, BendheimCenterfor Finance, PrincetonUniversity "It was said once that war is too important to be left to generals. Similarly, Finance is too important to be left to accountants and finance specialists. It should be part of every executive's toolkit. There is no doubt that this book will help develop and spread a deep understanding of corporate finance and therefore greatly enhance value for the business reader." Marc Bertoneche, Professeur des Universites, Bordeaux& Paris and Visiting Professor of Finance, HarvardBusinessSchool "A well-written, succinct, comprehensive and practical assessment of best-practices in corporate finance, risk management and reporting standards. I found it equally useful as a textbook or as a handy reference guide." Youssef A. Nasr, Group General Manager, South America, HSBC Bank "This book is chock-full of useful ideas, insightful observations, and illuminating real-world case studies of the underlying corporate finance propositions. It will teach you a lot about corporate strategy and contemporary business history." Danny Quah, Professor of Economics, LondonSchoolof Economics and Political Science "If you need a reference for what, why, and how financial departments of leading multinational companies increase their shareholder value, this is the book for you." Alexander Kaganovich, Director, Funds Development Group, Credit Suisse First Boston In this book, you can experience first hand, how high-performance finance organizations across a broad spectrum of industries go about their business of creating and sustaining shareholder value, and can selectively apply best practices to your corporation's unique circumstances.
