Long Term Capital Management

Financial managers are central figures in arguably the most important topic in financial management; long term capital management. This key function determines both the ongoing strength of a business and drives the growth of a business. These two elements are the cornerstones of what will determine the long run value of a business.

  1. Capital Budgeting – Investment and Project Valuation
    1. Continually explore new investment opportunities to both maintain and grow the strength and value of the business
    2. Identify the opportunities that are congruent with the business’s goals
    3. Valuing identified opportunities using the sum of
      i. a discounted cash flow (DCF) valuation, and
      ii. a real option valuation; which is the right but not the obligation to undertake certain investments
    4. Ranking the available project and investment opportunities
    5. Investments and projects with the highest values, as measured by the resultant net present value (NPV) will be recommended
    6. Determining the availability and costs of funding sources
  2. Corporate Structure
    1. Debt capital
    2. Common shares
    3. Preferred shares
    4. Tax efficient income retention and distribution
    5. Estate planning
    6. Exit strategies
  3. Investment Banking Liaison
    1. Raising seed, start-up, development or expansion capital
    2. Mergers, demergers, acquisitions or the sale of companies
    3. Equity issues by companies, including the flotation of companies on a recognised stock exchange in order to raise capital for development and/or to restructure ownership
    4. Raising capital via the issue of other forms of equity, debt and related securities for the refinancing and restructuring of businesses
    5. Financing joint ventures, project finance, infrastructure finance, public-private partnerships and privatisations
    6. Secondary equity issues, whether by means of private placing or further issues on a stock market
    7. Raising debt and restructuring debt