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Index
Cover
Title Page
Copyright
Acknowledgments
Chapter 1 How resilient is your Capital Agenda?
by Jeffrey R. Greene
Framing decisions within the Capital Agenda
The Capital Agenda’s building blocks
Who can benefit from this book?
Universal lessons from Allergan and Valeant
Stress test your Capital Agenda
Making the most of your Capital Agenda
Performance improvement opportunities
Navigating the book
Notes
Chapter 2 Do you know the intrinsic value of your company and how to manage it?
by Daniel Burkly
Closing the gap between intrinsic and market value
Common valuation applications
Getting more value out of valuation
Inconsistent applications of valuation
Eight ways to minimize misuse and maximize effectiveness
Cultivating a valuation mindset
Notes
Chapter 3 Are you allocating capital across the enterprise to reduce C-suite stress?
by Jeffrey R. Greene
Eight leading practices for allocating capital
Evaluating individual investment opportunities: Quantify, debate, judge
“Capital allocation is a contact sport”
Notes
Chapter 4 Are your portfolio reviews timely, objective, and thorough?
by Jeffrey R. Greene and Jeff Wray
Diagnosing the health of your portfolio management process
Preparation drives value
An acquisition perspective
Approach ownership flexibly
Implement world-class portfolio management
Can “virtual” carve-outs show the way to cost reduction?
Confront barriers to success
Putting theory into practice
Notes
Chapter 5 Do your acquisitions consistently pay off for shareholders?
by Brian Salsberg
An age-old M&A question
Stress testing your M&A activities
Lessons learned
Notes
Chapter 6 Are you planning and executing divestments for maximum value?
by Paul Hammes and Subin Baral
Divesting is critical to your capital strategy
What defines a successful divestment?
Divestment guiding principles
Leading sources of value erosion
Can you increase business value before divesting?
What does it take to close the deal and maximize value?
Divesting for value
Note
Chapter 7 Do your financing choices support flexibility and efficiency?
by K.C. Brechnitz
Use capital structure to facilitate business goals
Assess your business through the capital lens
Assess strategic financing alternatives
Chapter 8 How well does working capital management contribute to cash flow and earnings?
by Sven Braun and Steve Payne
Why working capital matters
Stress test your working capital proficiency
Are you using outdated metrics?
The psychology is harder than the math
Next steps in the optimization journey
Chapter 9 Is tax a full partner in building resilience and driving value?
by Bridget Walsh and Erica Lawee
Key tax issues affecting business today
Tax in the Capital Agenda
Turning tax uncertainty into opportunity across the Capital Agenda
Notes
Chapter 10 Are strategy, finance, and operations integrated for optimal value creation?
by Sharath Sharma and Daniel Burkly
Day 1
Strategy, finance, and operations integration
Complex change will be a constant
SFO integration creating value through M&A
How urgent is your need for SFO integration?
Stress testing your SFO integration
It’s a journey, not a destination
Notes
Chapter 11 How can you get the most out of your advisors?
by Giri Varadarajan and Aayush Tulsyan
Setting the context
First principles
When it is appropriate—and not appropriate—to use an advisor
Hiring process
Advisors as competitors and as peers
How to start the relationship with an advisor
Fourteen other leading practices (and what not to do) when hiring and managing advisors
Beyond advisors to journey partners
Note
Chapter 12 Can your strategy thrive in a digital world?
by Tony Qui and Glenn Engler
Extending the reach of digital
Who’s the digital disruptor?
Focus on seven dimensions of digital
Feeling overwhelmed? Join the club. But there is a way forward
This is for certain
Note
Chapter 13 How can you pre-empt activist shareholders?
by Shyam Gidumal
How activism has changed
Four areas of focus for activists
The best protection against activism
What to do when the activist’s letter arrives
Formulating your response
We thought about that, too
Activism is here to stay
Notes
Chapter 14 How should you restore a distressed company to health?
by Andrew Wollaston and Donald Featherstone
Turnaround versus restructuring
Recognizing corporate distress and the human dimension
Marshaling the recovery
Remaining in control
Early detection is the best prevention
Chapter 15 Will your strategic goals ensure your company reaches its full potential?
by William Achtmeyer and John Trustman
A good strategy starts with setting the right targets
Defining market context
Setting margin targets using the Performance Gap
Setting growth targets with the Opportunity Gap
Aligning with investors via the Perception Gap
Full potential value synthesis
Notes
Glossary
Contributor Biographies
About EY
Index
End User License Agreement
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