This service is targeted to those businesses (typically public entities) who, though profitable, find it difficult to obtain adequate shareholder value for stronger performance. We understand that profitability and positive cash flow of a business does not always generate shareholder value.
With our strong technical capability, we take a close and lateral view across the entire organisation to identify and isolate any potential weaknesses or opportunities. We have the experience and resources to implement our recommendations and streamline the process for our clients.
Optimal capital structure assignments involve:
- Constructing a financial model which goes beyond profit measurement and unpacks shareholder value drivers, including:
- Top line growth
- Margin
- Asset utilisation and re-investment
- Capital structure mix
- Reviewing the shareholder value created and business value during a period and showing the variance between observed equity trading value and actual shareholder value;
- Commenting on the differences and their implications;
- Designing and implementing systems aimed at promoting shareholder value creation, including:
- Incentive and remuneration structures
- Capital budgeting
- Risk management
- Goal setting and planning
- Communications
- Performance measurement