Capital Allocation and Value Creation: A Market-Based Framework for Executives

This book provides a practical,market-oriented approach to capital allocation, shedding light on the complex issue of cash flow deployment and the creation of shareholder value. It offers a useful analytical framework for corporate executives to consider when allocating capital and provides empirical findings from peer group studies and company case studies.

Format: Hardback
Length: 231 pages
Publication date: 04 December 2023
Publisher: Springer International Publishing AG

This comprehensive book delves into the intricate realm of capital allocation, offering a practical and market-oriented approach to creating shareholder value. To thrive in the corporate world, one must not only possess business acumen but also have a deep understanding of investment strategies. The management must navigate a myriad of investment options, including mergers and acquisitions (M&A), dividends, share repurchase programs, and organic growth opportunities, to make informed decisions about where to allocate capital.

This book provides a valuable analytical framework for corporate executives to consider when allocating capital, drawing upon empirical findings from peer group studies and company case studies. It addresses critical questions such as:

• What are the primary drivers of shareholder value in your company? Are they aligned with your strategic vision?
• What are the key dynamics and trade-offs between return on investments (ROIC), growth, and earnings quality?
• What are the current market expectations embedded in the stock price?
• Given your capital allocation priorities, what constitutes an "optimal" capital structure?
• How do you establish and communicate your capital allocation and funding priorities?

Written by an experienced expert with over 25 years of industry experience, this book empowers business executives to enhance their skills as capital allocators by gaining a deeper understanding of the financial markets. It offers valuable insights and practical strategies to help executives make informed decisions that drive long-term growth and profitability.

Weight: 457g
Dimension: 210 x 148 (mm)
ISBN-13: 9783031470479
Edition number: 1st ed. 2023