Global Business And Finance Vantage Point
Maximize Profit's Articles
Woe befalls any employer who attempts to use their business equity by inviting in private equity firms. The negative image attached to private equity firms is such that even the most reasoned arguments will not do. The workers and trade unionists will be utterly convinced that the sole purpose of the private equity firm
is to take away their jobs and micro-manage them into extinction.
On the other hand the private equity firms will also have their suspicions about the employees within the organization they are trying to deal with.
Business equity should be of interest to all those people who make it their business to deal with finance. Essentially it is the marketable part of the business value. Income on the other hand consists of revenues that revert back to either the business or to the owner’s personal expenditure. In order to create equity the business owner might be forced to cut down on the income in order to invest. On the other hand in order to create income the business owner might be forced to reduce his personal
Setting up a corporate finance department
requires quite a significant number of human and financial resources. One would wonder when the company is trying to maximize profits by reducing costs; why it would invest in such a costly venture. The answers to these questions lie in an understanding of the true reasons for the existence of a corporate finance department.
Likewise those people working in corporate finance can get lost in the bureaucracy of the department while forgetting their proper roles as custodians of capital investments. They can allow themselves