Perhaps one of the more challenging roles for the corporate finance team is to value flexibility. It is somewhat an intangible concept but quite important in terms of finding the alternatives between different projects as well as establishing the relationships between the various elements of the projects. What really happens is that the project is related to different other projects and there has to be a level of interdependency as well as the ability to adjust the project depending on changing circumstances. This article will explore some of the techniques used. ...

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 ...

Corporate finance teams will have a strategy for obtaining sources of funding to keep the firms key objectives alive. However it is important to be aware those sources of funding might end up being unsuitable or they could fail. That is why it is important to always have a backup in terms of funding from alternative sources. The corporate finance team will assess each alternative with a view to prioritizing the most viable. It does not mean that all these sources of funding will be taken up. It just ...