Creating Shareholder Value Systematically
The cornerstone of the planning process is a detailed financial model that enables the simulation of the business environment allowing testing of what-if scenarios, cash flow and capital requirements, responses to risk and alternate business strategies.
Business strategy is developed in a facilitated process using the model to test alternate approaches.
Value Creation Plan
The drivers of future value will be identified and their impact on shareholder value modelled. This enables a focus on what is important and what is less important. The value creation plan will involve an annual Share Capital Valuation to track progress toward the goal.
No strategy works if you do not implement. The implementation plan breaks down the strategies and prioritises them to enable focus.
Reporting is the measurement of achievement against the plan. This involves monthly budget/actual/reforecast reporting and reporting of the implementation of the strategy.
Each year this process is repeated so that the achievement of the goal becomes a measured process, rather than a dream.
Costing is based on an expectation of a 20 times benefit to cost ratio over a 5 year period. Where this ratio is exceeded the consultant will be entitled to exercise options to the value of 5% of the stock of the company at the price applicable to the commencement of the consulting agreement.