Valuation - maximizing corporate value (2003)

[...]... left-hand column, mark the top five resource-using activities Step 2 In the right-hand column, rank only those subject areas marked in Step 1 from most to least resource-using (assign five points to most, four points to second-most, three points to third-most, two points to fourth-most, and one point to fifth-most) Remember: Select exactly five activities to rank, no more, no less Top Resource-Using... assisting middle-market manufacturing and service entities, as well as various not-for-profit organizations, in refining and applying top-management strategy and valuation techniques used by large corporations Accordingly, it should be of interest to officers, directors, and managers or advisors to all types of organizations It is especially relevant for people dealing with closely-held firms, autonomous... Develop Objectives 108 Develop Strategies 113 Select Value -Maximizing Strategies 119 Summary 128 Endnotes 128 CHAPTER 6 Evaluate Alternative Approaches Review the Selected Strategies Understand the Methodology 129 130 131 Contents Quantify the Selected Strategies Calculate Revised Case Value Measure Value Enhancement Summary 154 CHAPTER 7 Execute for Value xiii 134 144 150 157 Create Action Plans 158... Implicit Strategies Plot Growth Performance Analyze Profitability Ratios Determine Relative Value Summary 20 Endnotes 20 1 2 9 13 16 18 CHAPTER 2 Calculate Current Value Discover Importance of Value 23 Master Discounted Cash Flow 30 Understand Value Drivers 35 Determine Cost of Capital 40 Calculate Current Organization Value Summary 48 Endnotes 48 23 43 xi CONTENTS xii CHAPTER 3 Assess Strategic Landscape... organization to the place where it is today Chapter 2 presents a methodology to calculate the current value of the organization The valuation variables involved require five years of financial statements However, younger or start-up organizations can develop estimates for the variables and also calculate a current value Chapter 3 helps the management team characterize the organization’s strategic landscape... of spray-on artist’s adhesive, index cards of four different colors, felt-tipped pens, a package of stick-on red dots, and a blank wall covered with paper Methodology—Preparation Spray the paper on the wall completely with the artist’s adhesive so that index cards can be placed on and taken off the paper effortlessly Pass out index cards of each color to every participant.3 Then pass out felt-tipped... closely-held firms, autonomous divisions or subsidiaries of publicly-traded companies, county and local governments, and schools and universities as well as other medium-sized entities This book shows how, by understanding and using a few, simple concepts, the leaders and members of any type of organization can enhance their daily and long-term satisfaction and that of their key stakeholders while simultaneously... exercises and techniques that enable an organization to define its vision, values, goals, and niches which, in turn, provide a solid foundation for the rest of the steps Chapter 5 involves the creation of specific objectives and strategies that, when taken collectively, more completely define the organization’s vision and long-term goals It reviews the basic principles of strategy formulation and provides... organization of pursuing various alternative strategies When followed, these techniques allow for the selection of those strategies better suited to enhancing the organization’s overall value The last chapter is an action-oriented one Chapter 7 gets into the specifics of executing the selected strategies Useful forms and checklists are presented which enable the organization to coordinate implementation... results in a strong conceptual understanding of I 1 2 CONDUCT STRATEGIC AUDIT the strategic building blocks at your disposal and is the first step toward setting sound business goals and maximizing your organization’s strategic value in the future It is important to remember that it is impossible for the organization’s leader to know all aspects of the organization as well as those who deal with them on a . Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data: Norton, George M. Valuation : maximizing corporate value / George. financial advi- sors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valua- tion, and financial instrument analysis, as well as much more. For.