top of page

Value Creation Insights

Duration: 4 Days

Overview

The creation of financial value is one of the core objectives of a commercial organization. Value is generated in all aspects of operational decisions and can be viewed as tangible and intangible. Both affect the viability and continuity of the business. 

Understanding the nature and process of value creation should be an essential for all senior managers involved in making resource allocation decisions.

 

This course provides an insight the various operational activities that contribute to value and is supported by practical examples and exercises. It also demonstrates how value can be measured and monitored.

Outline

Nature of Value creation

  • How value is defined

  • Alignment with corporate strategy

  • Tangible & Tangible value

  • Risk versus Reward

  • Latest trends in quantifying value

  • Benefactors of value

  • Executive responsibility in value creation

Economic & Business Dynamic Factors

  • Reacting to changes and trends

  • New products

  • New markets

  • Product mix

  • Pricing strategy

  • Use of Innovation

  • Productivity and efficiency

  • Supply chain strategy

  • Value from other services

Use of Debt versus Equity

  • Various funding models and types

  • Why choose debt or equity, or both?

  • Understanding the use of debt to achieve growth strategy

  • Understanding corporate risk

Portfolio Management

  • What is an investment portfolio?

  • Strategy & composition of the portfolio

  • Optimum portfolio mix

  • Measuring value and modifying the portfolio

Mergers, acquisitions, investments and divestments

  • Growth through mergers & acquisitions

  • Aligning with corporate strategy

  • Determining funding requirements

  • Valuation acquisitions

  • Challenges of extracting value

  • Making divestment decisions

Management of Working Capital

  • Importance of cash flow and cash conversion cycle

  • Determining optimum cash balance

  • Use of short-term debt

  • Determining best terms for receipts/payments

  • Managing supplier relationship

  • Effective management of inventory

bottom of page