finance-value-creation-riyadh-may



Finance for Senior Non-Finance Management  

Understand Risks and Consequences and Make Better Choices

18-19 May 2025 in Riyadh

For non-finance executives with a solid grasp of finance and accounting basics, we have designed a course to take your knowledge to a higher level.  Instruction, exercises and case studies that illustrate the relationship of value creation and business strategy, revealing accounting in its proper context, and empowering you to do more with greater confidence because of it.

Attendees for this program will typically be in the following roles:

  • CEOs, General Managers, Heads of Business Units and their direct reports.
  • Corporate development, planning and strategy professionals.
  • Senior functional executives.
  • Business owners and functional managers.
  • Entrepreneurs and Board Members.
  • Regulators and Policy Makers.
  • Appreciate the simple and consistent logic of value creation.
  • Contrast and reconcile this with accounting language.
  • Understand the strategic and financial drivers of shareholder value.
  • Reconcile shareholder and stakeholder management perspectives.
  • Relate business strategy to shareholder value, and build an organizational platform aligning them.
  • Overcome the limitations of accounting-driven decision-making with a value-based performance measurement system.
  • Acquire a toolbox for strategic transactions to drive company value.
  • Be better prepared to critically evaluate an investment proposal.
  • Incorporate shareholder perspective into corporate decisions.
  • Drive performance by aligning  managerial interests to shareholder interest.
This program is designed as advanced training preparing senior non-finance executives to skillfully navigate today's competitive environment and successfully steer the company. Building upon your understanding of the basics, we refine your knowledge of how financial resources are accumulated, utilized and monitored to create shareholder value. Primary reliance on an accounting perspective, without an appreciation of financial value creation, simply isn't enough and places companies at a clear competitive disadvantage.

The dual focus is on the economic and strategic consequences of business decisions, and how business strategies are better formulated in the context of financial economics. We highlight financial value creation while placing accounting in its proper place as the language of business, but not necessarily a primary decision-making tool. We look at the broader picture and how finance should be integrated into every facet of corporate management.

Disparate corporate functions harmoniously come together by exploring, and then linking, performance measurement, strategy formulation, capital budgeting, the risk and return relationship, financing choices and internal governance, and learning the criteria investors employ to evaluate a company and determine its true value. The program will equip the participants with a collection of tools and insights enabling them to effectively enhance and further refine their financial intuition, adding to their financial understanding to make sounder decisions and systematically maximize shareholder value.

1. Financial Value Creation versus Accounting

Defining and establishing the value objective.
Why accounting doesn’t measure value and how accounting profitability may not be what you think. 
In-depth analysis of the financial principles that do measure value.
Centrality of opportunity cost of capital as the minimum required rate of return.
Quantifying value principles into Present Value.
Understanding, simplifying, and communicating the Net Present Value rule for capital allocation.
How strategic competitive advantage drives NPV.
When return-based measures like IRR, may not be consistent with the value objective.

2. Linking Accounting and Financial Analysis to Value Creation

How managerial decisions and business activities impact accounting statements.
Seeing accounting information in the context of value creation.
The systemic link between balance sheet, income statement, and statement of cash flow.
Using ratios to assess profitability and value creation.
Limitations of financial ratios in managerial decisions.
Risk as the critical benchmark.

3. Building the Platform to Manage for Value

The inadequacies of accounting in guiding managerial decisions. 
Understanding tradeoffs between operating and asset efficiencies.
Integrating cost of capital in performance measurement.
Economic Value Added as a decision-making tool.
Understanding and correcting managerial misalignment.
Why effective incentive compensation requires reconciliation of an HR-centric approach with  shareholders' requirement of a competitive return.

4. Strategy in the Context of Shareholder Value

Why strategy is the means to an end and not an end in itself.
Relating strategy and the minimum required rate of return.
Understanding the relationship of strategy and financial value creation.
Reconciliation of strategic and financial objectives.
Integrating a Balanced Scorecard into the value equation.

5. Capital Allocation

The Cash Flow-based framework.
How capital markets value companies.
How debt affects company value.
Why financing structure is not a critical driver of value.
A more refined and robust application of multiples .
Prioritizing investment projects.
Working with the biases of the investment process.
Reversing the valuation into performance expectations, for target-setting.

6. Strategic Transactions

Mergers and acuisitons:
     Strategic rationale.
     Acquisition valuation.
     Issues for private companies.
Initial Public Offering (IPO).
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