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Presents a toolkit of market-based perspectives, analytic approaches, valuation techniques, and specific financial metrics for use in everyday business life. This book helps us understand the salient points and real world implications of a 'value management' movement which has taken hold in many corporations in the US and around the world.
List of contents
Getting started; Shareholder value and sustainable value: definitions and perspectives; Value-based metrics: from accounting to economics; Cost of capital; Economic profit assessment: value 'creators' and 'destroyers'; Financial 'drivers': support measures; Market value added: 'magnifier' concept; Value-based analysis: valuation hierarchy; Valuation methodologies; Corporate financial analysis: business unit valuation, business unit values and cash flows, sustainable revenue growth; Value driver programs: major internal investments; Mergers & acquisitions: major external investments; Capital investments: planning, evaluation and control; Financial reporting and communication: traditional/modification/new; Epilogue.
Report
"Shareholder Value: A Business Experience is a "must read" for CFO"s and their financial managers. Roy E. Johnson presents a technical subject using an enjoyable narrative to which any business person can relate. He explores innovative financial principles in a practical way - fostering effective implementation in the real world. The value-based financial performance concepts and approach detailed in this book have been successfully implemented in our company, radically improving the way we manage growth in the business." --Michael A. Patterson, Senior Vice President and Chief Financial Officer, DFB Pharmaceuticals
"Rich with insights for effective implementation of value-based management - specifically, the ongoing issues and discussions that arise and the personal vantage points that must be considered to keep the process "on track". The book sets forth the value-based financial performance framework with succinct formats to facilitate learning while, at the same time, enabling the reader to experience the implementation in a personal way. Having collaborated on client assignments with the author, I can attest to the integrity and realism of the experience and, also, to the line of sight financial "drivers" so necessary as a foundation for value-based incentive compensation and corporate communication." --Mark C. Ubelhart, Value-Based Management Practice Leader, Hewitt Associates LLC
"All MBA students and recent graduates should read this book. It uses some of the modern finance concepts that are now standard in the MBA curriculum. That"s the easy part. Roy Johnson"s book will also give you an appreciation of the hard part - how to get people in business to understand and effectively use modern finance concepts. Readers will learn a lot about finance and, more importantly, about changing a firm"s culture toward a focus on value creation. Observations from an extensive corporate and consulting career breathe life into the characters, making this book an extremely informative and interesting read." --Dr. Carl M. Noble, Jr., Chairman, The Alcar Group Inc. and Adjunct Professor, J. L. Kellogg, Graduate School of Management
