1. ELEMENTS OF FINANCIAL STRATEGY: ALTERNATIVES & TRADEOFFS (2 SESSIONS)
We examine the elements in establishing an integrated financial strategy, including capital structure, dividend policy, cash and risk profile, and how it relates to other key corporate strategies, particularly growth. We review how each element of financial strategy is related to value, and how to make trade-offs between these various elements of financial strategy to develop an overall strategy that best supports organisational strategy and objectives:
Material covered in this topic includes:
- The link between financial strategy, risk management and value
- Practical guidelines on financial strategy
- Life cycle models of financial strategy
- Brief review of risk management alternatives: especially capital versus hedging etc
- Integration of risk management and financial strategy
- Review of empirical evidence on financial strategy
2. MODELLING TOOLS TO HELP IN DESIGNING FINANCIAL STRATEGY
In this topic we review the analytical tools available to help design financial strategy. These include financial modelling, ratings prediction models, as well as a review of cash flow processes and how they impact an assessment of risk:
Material covered in this topic includes:
- Financial modelling tools for assessing risk
- Analytical models of capital structure
- Ratings prediction models
3. DESIGNING COMPLEX CAPITAL STRUCTURES
Many companies have capital structures that comprise more than ordinary shares, for equity, and corporate debt. Hybrid instruments, convertibles, subordinated debt and project finance are some examples. We will examine the role of these complex capital structures and how to assess the benefits and costs:
Material covered in this topic includes:
- Menu of choices on non-standard debt and equity products
- Assessing the true cost of non-standard financial products
- Review of industry specific capital structures
4. CAPITAL STRUCTURES IN MULTINATIONALS
Financial structures in multinationals add another layer of complexity, with the need to address issues of tax, currency risk, repatriation etc. This section reviews financial strategy options for multinational companies:
Material covered in this topic includes:
- Financial strategy complexities posed by multinational operations
- Funding and risk management strategies available to MNCs
- Integrating financial and business strategies in MNCs
5: MANAGING STAKEHOLDERS (PARTICULARLY SHAREHOLDERS)
Examines important non transaction aspects of financial strategy:
Material covered in this topic includes:
- Investor relations strategies
- Communications and disclosure strategies (including the role of ‘guidance’)