SEMINAR NO. 7:
CERTIFICATE OF PROFICIENCY IN
STRATEGIC VALUE ANALYSIS
Strategic Performance Perspectives
This topic introduces Business Performance Measures and provides a link as to how these measures are interrelated with the capital structure of the firm. The impact of financial structure on planning performance evaluation is considered, specifically the relative measures (ratios) used in financial statement analysis. Investment and Financing issues are separated; and capital structure and its role is obtaining an appropriate discount rate for capital projects is particularly considered.
- Measures of Strategic Performance
- Re-Engineering Financial Statements
- Cost of Capital (the Discount Rate)
- Strategic Financial Structures using Debt and Equity
- Mini Case Study: Capital Structure and Firm Values
The Management of Strategic Value
This topic introduces the concepts in a relatively new area, Strategic Value Analysis and Management, and compares these concepts to the more traditional concepts in financial management, especially capital budgeting and net present value. It is demonstrated that the concepts of ‘value’ and ‘strategic value’ can be quantified for planning purposes.
- Testing "Strategic Fit"
- Traditional Valuation Methods: Advantages and Disadvantages
- Key Value Drivers
- Price Earnings and Market to Book Ratios
- The Perpetuity Method in Valuation
- Case Study in Strategic Value Analysis
Corporate Radar and Early Warning Systems
Here the approaches to risk management using short-term (weekly) and long-term (annual) corporate radar systems are considered, in order to determine the health of a business organisation. Bankruptcy prediction models (such as Z-scores) are specifically considered.
- Monitoring Systems for Short-run Trouble Shooting
- Financial, Marketing and Production Health Checks
- Long-run Predictors of Corporate Failure
- Evaluation of Failure Predictors
- Case Study in Advanced Financial Analysis