Capital Allocation: Principles, Strategies, and Processes for Creating Long-Term Shareholder Value

"Generate double-digit returns and seize the competitive edge with smart, savvy capital allocation The strategic deployment of capital is one of the most effective ways to create long-term value. But how much do you know about what your organization spends capital on or the timing of that capital deployment? This kind of knowledge can make the difference between organizational success and failure. Capital Allocation provides the tools, processes, strategies, and insights you need to add more value to your company. Examining the various alternatives at your disposal regarding the deployment of excess capital, David Giroux, Chief Investment Officer for Equities and Multi-Asset at T. Rowe Price, covers the entire gamut of capital allocation issues, including optimizing capital structure, capital allocation alternatives, M&A, and special situations. Giroux uses academic research, personal experience, and uncomplicated mathematics to illuminate the principles, strategies, and processes that can create long-term shareholder wealth. He provides case studies from Kodak, Comcast, Thermo Fisher Scientific, Danaher, GE, and others showing how capital allocation has-and hasn't-worked in real-life situations. And he shows how to use capital allocation to head off possible activist investors. Some textbooks touch on the concept of capital allocation, but none examines the subject as practically or thoroughly as this book. Capital Allocation offers everything you need to know for deploying capital wisely to outperform your competitors over the long term"--
Seize the competitive edge through intelligent, differentiated capital allocationThe intelligent deployment of capital is one of the most effective ways to create long-term value. But despite this, there are very few capital allocation experts on the boards of the largest publicly traded companies, and academic research consistently finds that most firms deploy capital sub-optimally.Capital Allocation aims to educate senior leaders, board members, investors, students, and anyone interested in business on this important topic. Until now very little has been written on capital allocation outside of academia, even though the strategic deployment of excess capital is an increasingly significant source of competitive advantage for many companies.David Giroux, Chief Investment Officer for Equities and Multi-Asset and Head of Investment Strategy at T. Rowe Price, covers the entire gamut of capital allocation issues, including optimal capital structure, capital allocation alternatives, mergers & acquisitions, and special situations. Capital Allocation walks you through this critical topic from beginning to end, including:Stories of companies that allocated capital in ways that created significant shareholder valueSeveral real-life decision-making models you can use for strategically allocating your firm’s capitalGuidelines for generating high returns in the long term to build sustainable shareholder wealthGiroux uses academic research, personal experience, and uncomplicated mathematics to reveal approaches and actions that create long-term value. He provides case studies from Kodak, Comcast, Thermo Fisher Scientific, Danaher, General Electric, Microsoft, and others showing how capital allocation has?and hasn’t?worked in real-life situations. And he shows how to use capital allocation to head off possible activist investors.Capital Allocation offers everything you need to know for deploying capital wisely to outperform your competitors over the long term.