Value Creation

Companies are committed to creating shareholder value based on sustained financial performance and long-term profitable growth. Business decisions are guided by the priorities of building long-term value and rigorous financial discipline. Primarily focus on opportunities where we can establish competitive advantage, deliver outstanding results, and create significant value. We are committed to assist our clients in creating and managing a portfolio of assets that will deliver strong, sustainable financial performance and long-term growth.

Most corporations have some sort of capital budgeting process in place to evaluate their opportunities for investment. While the metrics used vary widely, they typically revolve around calculations of the net present value of the future benefits associated with the investment. They may also include measures of internal rate of return or payback period. Investments that clear the hurdles established by management can then be pursued based on their future benefits and strategic importance. These investments are pursued because they are expected to deliver economic profits and create value. While capital budgeting is a routine activity at most corporations, most do not have a similar process in place to evaluate the performance of their existing operations.

Take a company with a market capitalization of $300 million that is considering how to spend its $30 million capital budget. Wouldn’t the benefit be far more from evaluating the value contribution of each aspect of its operations and the opportunities for value improvements than focusing its financial analysis on the deployment of additional capital?

To find out more about our Value Creation solutions, please contact us.