My 2nd Book : Corporate Growth & Cashflow Sustainability – CONTENTS

23 Aug, by

DRAFT 1 (Wed 23 Aug 2023)
Chapters
Preface
1. Cashflow Sustainability as a foundation for corporate growth
1. Introduction
2. What is sustainable cashflow?
3. Two key engines of Corporate Cashflow Sustainability (CCFS)
4. CCFS Framework
5. How to strengthen the 2 cashflow engines?
5.1 Capital Structure
5.2 Sales
6. What tools are needed to create the CCFS Framework?
6.1 Linking 1st CF engine to the 2nd CF engine.
6.2 Using lagging and leading indicators.
6.3 The Economic Approach to Accounting (ERAA)
6.4 Metrics for assessment of Cashflow Sustainability – P&L PAT and
Cash PAT
7. The ERAA Framework
8. Cashflow Statement Analysis – Period & Trend
9. Why Cashflow Sustainability is the foundation for Corporate Growth?
10.Are we satisfying discerning shareholders’ stringent demands?
11.Practitioners’ Takeaways
12.Summary and conclusion

2. What can adversely disrupt cashflow sustainability?
1. Introduction
2. Lack of diversification
3. Political & economic upheavals
4. Recession
5. Pandemic
6. What’s next?
7. Practitioners’ Takeaways
8. Summary and conclusion

3. C-suite – key strategic planning roles & responsibilities
1. Introduction
2. Newly appointed CEO
3. The incumbent CEO
4. The CFO/Finance Leader
5. The FP&A Team
6. The first 100 days on the job
6.1 CEO
6.2 CFO
7. Practitioners’ Takeaways
8. Summary and conclusion

4. Setting up for corporate growth – corporate functions and responsibilities
1. Introduction
1.1 What is corporate growth?
1.2 The corporate eco-system
1.2.1 Vision and mission
1.2.2 Strategic market management
1.2.3 Business strategy
1.2.4 Business strategy decisions
1.2.5 Business portfolio design
2. Vision and mission
3. Strategic market management
4. Business strategy
4.1 Business strategy has 6 dimensions.
4.1.1 The product and market in which the business is to compete.
4.1.2 The level of investment
4.1.3 The functional area strategies
4.1.4 The strategic assets and skills
4.1.5 The allocation of resources
4.1.6 The deployment of synergies
5. Fundamental business strategy decisions
6. Business portfolio design
7. Practitioners’ Takeaways
8. Summary and conclusion

5. Management models – how to apply them effectively?
1. Introduction
2. Fish bone / Gap analysis
3. Ansoff Matrix
3.1 Market penetration
3.2 Market development
3.3 Product development
3.4 Diversification
3.5 An illustration – Automobile distributorship
4. SWOT Analysis
5. Porter’s 5 forces
6. Marketing Mix / PESTLE
7. Industry attractiveness
7.1 Introduction
7.2 How to set up the Industrial Attractiveness (IA) Matrix
7.3 How to assess IA using the Matrix.
8. Boston Consulting Group (BCG) Model
8.1 BCG history and usage
8.2 What does the BCG Matrix depict?
8.3 How to apply the BCG Matrix?
8.4 Graphical representation
8.5 Drawbacks of BCG
9. Core competencies
10. Integration of management models
11. Practitioners’ Takeaways
12. Summary and conclusion

6. Organic growth
1. What is organic growth?
2. The differences between organic and non-organic growth.
3. What are the stages in organic growth?
4. How to test if organic growth is performing?
4.1 Determine CAGR (Compound Annual Growth Rate)
4.2 Core earnings test
4.3 Increase in market capitalisation
5. The importance of articulating the company’s business succinctly.
6. How to measure success in organic growth?
6.1 What are the secrets in organic growth companies?
6.2 Major keys of success
7. Practitioners’ Takeaways
8. Summary and conclusion

7. Non-organic growth
1. Introduction
2. Functions and responsibilities of M&A Department
3. Acquisition checklist
3.1 Describe the acquisition strategy.
3.2 What are the objectives of M&A strategy?
4. The pitfalls of M&A.
4.1 Lack of Corporate Planning for M&A
4.2 Lack of knowledge of extent of M&A deals to fulfil planning objectives.
4.3 Target valuation issues – overpayment
4.4 Inadequate/misdirected due diligence
4.5 Non-quantification of synergies for subsequent negotiations.
4.6 Debt/equity funding considerations
4.7 Post-acquisition integration problems
5. Extent of synergies
6. Due diligence, synergy extraction, and negotiation
7. Financing the acquisition – debt and/or equity?
7.1 Using equity to fund an acquisition.
7.2 Using debt to fund an acquisition.
8. Financial Modelling
9. Practitioners’ Takeaways
10..Summary and conclusion

8. Framework for Corporate Planning
1. Introduction
2. Where are we?
2.1 Core businesses
2.2 Non-core businesses
2.3 Strengths and weaknesses review
2.4 Business Model
2.5 Where are we at then?
3. Where do we want to go?
3.1 Opportunities and threats
3.2 Megatrends.
3.3 Strengthening core businesses.
3.4 Divestment exercise
3.5 Strategic thinking
3.6 Where do we want to go now?
4. Can we get there?
4.1 New strategic direction
4.2 Resources – assets & skills
5. Practitioners’ Takeaways
6. Summary and conclusion

9. Environment, Social and Governance (ESG)
1. History
2. Dimensions
2.1 Environmental
2.2 Social
2.3 Corporate Governance
3. Seventeen goals for the planet
4. Responsible investment
5. Implementation and reporting
6. Issues and problems
7. Disclosures and regulations
8. Practitioners’ Takeaways
9. Summary and conclusion

10. Company valuation – are we heading in the right direction?
1. Introduction
2. Highlights of the Income Approach
3. Concepts in business valuation
4. Context of valuation
5. Operating profits and after-tax cashflows in perpetuity
6. Weighted average cost of capital (WACC)
7. The Hamada equation and unlevered beta
8. Gordon model for computation of Terminal Value and Enterprise Value
(EV)
9. Adjusting from operating profit (EBIT) to free cashflows
10.Are we heading in the right direction?
11.Practitioners’ Takeaways
12.Summary and conclusion

Appendices
Appendix 1 Profile of Author
Appendix 2 CAPM computation
Appendix 3 Business Valuation – A primer
Appendix 4 Business Valuation – Income Approach
Appendix 5 Key Financial Indicators by SBU
Appendix 6 The Finance Managers’ Masterclass Run 33
Appendix 7 The Finance Leaders’ Bootcamp Run 10
Appendix 8 Finance Leader to Strategic Thinker Run 5