Corporate Valuation and Value Creation

From 1980s onward there has been a remarkable transformation of the global business and financial scene, thanks to deregulation, liberalisation, globalisation, automation, privatisation, and the ascendance of the services sector.

In the wake of these developments, competition has intensified, investment and financing avenues have expanded, corporates have grown in size and complexity, capital has become more mobile, institutional investors (who are in general, more demanding than individual investors) have become an important force, financial prices have become more volatile, and intangible assets have assumed greater significance.

In response to these opportunities and challenges, shareholder value has become the central corporate agenda and corporates are becoming more focused on value creation. In this context, every manager would like to know:

What is the value of my company?

How can the value of the company be enhanced?

Thus ‘corporate valuation’ and ‘value creation’ are of interest to managers in general and senior managers in particular – they are also of interest to ‘value investors’. This book addresses these issues. It seeks to blend the conceptual world of the scholar with the “how to do it” view of the practitioner. It takes a pragmatic approach, highlighting useful insights from diverse disciplines like finance, strategy, management accounting, corporate governance, organisational design, and behavioural economics. As a result, it synthesises a range of perspectives instead of focusing on a single silo of ideas.