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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

Horizon 1 (H1) represents the current core operations of a company that produce the cash flow needed to sustain operations, to meet investor expectations, and to invest in future growth. The two together, NPV + OV, provide an inclusive but not inflated valuation. The 3 Horizons model breaks down strategy into three parts.

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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation. The overall value of a foreign investment is equal to the NPV of the expected stream of profits for the life of the investment. Vinod K.

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When It Pays to Think Like a Finance Manager

Harvard Business Review

They’re essentially asking the company to take the cash it has generated through its business operations and spend it on something with an uncertain future return. Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? Here’s why. Excerpted from.

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

operating rooms, recovery floors, emergency department), and ancillary departments (e.g., Consider, for example, a surgical patient who starts in the pre-operative area, then moves to the operating room, the post-anesthesia care unit, and the inpatient floor, with occasional side trips for imaging, testing, and physical therapy.

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Can We Quantify the Value of Connected Devices?

Harvard Business Review

And this addresses the commercial value creation question – P&G’s mindset was to create operational efficiencies that would contribute to healthy EBITDA margins. Combining these creates a P&L and a projection, which through a discounted cash flow analysis yields an NPV, which can be used to assess valuation.

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Old Buildings Are U.S. Cities’ Biggest Sustainability Challenge

Harvard Business Review

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. Addressing energy use in existing large commercial buildings has proven notoriously difficult.

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Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

“Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.” ” Choosing to lead and manage in accord with that empirical insight has enormous organizational and operation repercussions. ” Does the leaner, meaner, and refocused Lafley 2.0

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