Corporate financial strategy PDF Book
It is now nine years since the first edition was published. In that time there have been many developments in the financial world, and in our own views about financial strategy. Feedback from several generations of MBA students and executives has also guided our thoughts. Accordingly, we believe that this edition is more understandable and more relevant to the needs of students and managers today. The major changes we have made in this edition include: • The section on financial theory has been placed in an appendix, so as not to disrupt the flow of the text for the knowledgeable reader. A separate appendix discusses option valuation. • The discussion of the implication for strategy of a company’s share price has been expanded and placed in a separate chapter. • The order of the book has been revised to create a separate section on Financial Instruments, which sets out the key variables and discusses instruments currently on the market. • A new section on Transactions and Operating Issues discusses the practicalities of flotations, acquisitions, restructuring and MBOs, as well as placing them in the context of financial strategy. The section also introduces chapters on working capital and on executive compensation, both of which can have a major impact on value. • The section for Banks and Professional Advisors which was in the first edition has been dropped, although some of that information is included elsewhere in this text. viii Preface to second edition Throughout, our aim has been to make the book more readable, and more useful to the reader. To this end, all of the case studies have been updated, and more Working Insights included to illustrate the discussions. The preface to the first edition thanked Keith’s family for all of their support. In this edition, we extend those thanks to Ruth’s family, and in particular to Alfred Bender, for his constant encouragement. Ruth Bender Keith Wa
