Overview
- Helps executives and investors improve their skills by better understanding the financial markets
- Covers a range of investment opportunities, including M&A, dividends, and share repurchase programs
- Provides a useful analytical framework for corporate executives to consider when allocating capital
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About this book
By adopting a practical, market-oriented approach to capital allocation, this book sheds light on the complex issue of cash flow deployment and the creation of shareholder value. In order to run a company efficiently, it is not sufficient to simply be a competent businessperson. One must also possess the skills of a knowledgeable investor. The management must determine where to invest capital given the diverse range of investment options available, such as mergers and acquisitions (M&A), dividends, share repurchase programs, and organic growth opportunities.
This book provides a useful analytical framework for corporate executives to consider when allocating capital, along with empirical findings from peer group studies and company case studies.
The book helps answer the following questions:
· What are the primary factors that drive your company's shareholder value? Are they aligned with the strategy the companyis pursuing?
· What are the key dynamics and trade-offs between return on investments (ROIC), growth, and earnings quality?
· What are the current market expectations embedded in the stock price?
· Given the capital allocation priorities, what does an “optimal” capital structure look like?
· How do you set, and in turn communicate, the capital allocation and funding priorities?
Written by an expert with more than 25 years of experience, this book helps business executives improve their skills as capital allocators by better understanding the financial markets.Similar content being viewed by others
Keywords
Table of contents (16 chapters)
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Front Matter
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The Value Drivers That Matters
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Front Matter
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Reading the Market and Thinking Like an Investor
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Front Matter
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Authors and Affiliations
About the author
Torbjörn Arenbo has more than 25 years of experience working as a corporate finance advisor, portfolio manager, and risk manager. He currently holds the position of Chief Analyst and Head of Corporate Advisory Sweden at Danske Bank, where he has been employed since 2004. Before joining Danske Bank, he worked as a portfolio manager and risk analyst at Alecta Investment Management.
Bibliographic Information
Book Title: Capital Allocation and Value Creation
Book Subtitle: A Market-Based Framework for Executives
Authors: Torbjörn Arenbo
DOI: https://doi.org/10.1007/978-3-031-47048-6
Publisher: Palgrave Macmillan Cham
eBook Packages: Business and Management, Business and Management (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023
Hardcover ISBN: 978-3-031-47047-9Published: 01 December 2023
Softcover ISBN: 978-3-031-47050-9Published: 01 December 2024
eBook ISBN: 978-3-031-47048-6Published: 30 November 2023
Edition Number: 1
Number of Pages: XVIII, 231
Number of Illustrations: 2 b/w illustrations, 44 illustrations in colour
Topics: Business Finance, Investment Appraisal, Capital Markets