This paper outlines measurement of Economic Profit (sometimes called Residual Income, EVA) and how it can be used to assist in creating business value. It is regarded as the best of the performance measures around but, like most others, has to be used cautiously, largely because it is a single period measure in a multi-period world.
Library
Economic Profit to Assist Creating Business Value
Selecting a Risk Free Rate and Market Risk Premium when estimating a current Cost of Equity Capital
Guidelines for choosing inputs to the Capital Asset Pricing Model with data to June 2020 and a recommendation for a Market Risk Premium at that time
Guidelines for Selecting Risk Free Rate and ERP in Australia
Improving Value in M&A; or how improving governance can increase value - lessons from PE acquisitions
This is a version a an address to ACSI (Australian Council of Superannuation Investors). I was asked to address the question “What can a Board of a potential acquiring company do from a governance perspective to maximise the chance of acquisitions creating value for shareholders?”
The paper notes that PE investors have a strong focus on improving governance when controlling a target and Board’s can learn a lot about how to improve value by improving governance from PE firms. It notes aspects of governance that PE firms change to increase value.
Add Value to your Planning Process
A short paper encouraging the planning process to include a valuation of the strategic plan and alternative plans as an essential part of the planning process