Insights: CFO Insight

Is a strategic alliance right for your company’s growth?

Short answer: it depends on your purpose and the degree of control that you need. Strategic alliances are “strategic” because they solve significant strategic challenges where M&A and traditional strategies are less […]

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Is productivity or growth more important for a business?

Short answer: it is situation-dependent. A business must be productive to grow; otherwise, the company will grow at a loss. But beyond such a simple and basic notion, the answer is not […]

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How long will competitive advantage truly protect the firm’s profit and value?

Short answer: not indefinitely. How long can you expect a competitive advantage to last when planning for growth or conducting a valuation? This article aims to provide some numbers and shed a […]

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Is sustainable growth rate an adequate measure to forecast growth?

The short answer: no. The sustainable growth rate (SGR) indicates how much the company can grow organically, where the capital structure is kept constant. But there are more sources to finance growth […]

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Why M&A Synergies Are Often Overvalued

Many M&A deals are premised on the value of synergies.  In some cases, synergy targets can be as high as 30% to 70% to justify the deal. Yet synergies are often overvalued.  […]

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Get Strategic Due Diligence Right or Small Problems Turn into Big Problems

M&A growth can generate significant value. It can also be extremely stressful for corporate leaders. Once they set their sights on a target company, they start feeling anxious about pulling the trigger. […]

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Value the business as stand-alone

A business unit must conduct its valuation as a stand-alone entity. The primary reason is that business value is the most critical performance parameter, which the business unit manager must own, empower, […]

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