Master Capital Allocation

Learning Objectives

• To define what is capital allocation and identify the relevant tools.
• To identify and evaluate sources of cash generated by the business.
• To evaluate different investment opportunities.
• To integrate financing strategy with capital allocation to preserve flexibility and maximize returns.
• To evaluate the uses of surplus cash to pay dividends and/or repurchase shares.

Course Description

“A process of how businesses divide their financial resources and other sources of capital to different processes, people, and projects.” is called capital allocation.

Often overlooked as a central theme, capital allocation decisions are vital in determining the future of the company and, as such, are some of the most important responsibilities of company management. Market-leading companies not only achieve success through their business results but also by properly allocating capital in a way that is most beneficial to shareholders.

In this CPE course, we are going to tackle capital allocation, that is, how the CEO, and you as their strategic partner, go about deploying cash inside the business.  CEOs, CFOs, and Boards are ultimately measured on their record of generating returns for their shareholders. 

The single most important determinant of shareholder returns is capital allocation. Knowing what tools, you have available and when to use them is the key.  

In this CPE Finance course, we’ll look at how and when you source cash.  

We will look at the strategies behind selecting the most optimal use of that cash, which may include buying back shares in yourself. We will also take a compelling look at how to master capital allocation to create shareholder value and competitive advantages for your organization.

Major topics covered in this online CPE webinar:

• How capital allocation can be used to supersize shareholder returns?
• How do define capital allocation and evaluate cap allocation decisions?
• Operating sources of cash
• Investment of capital
• Cash raised from financing
• Dividends and repurchases

In this online CPE course by Blair Cook, we also take a look at the six traits of highly successful CEOs, such as Jack Welch and Warren Buffet, who have proven to be masters of capital allocation over decades of creating astounding results for their shareholders.

Overview

• Operators vs. Allocators

  5 mins
• Capital allocation decision are obvious after the fact

  10 mins
• Centralized capital allocation requires aggregating the cash

  20 mins
• Shining the spotlight on hidden value

  31 mins
• Think of valuation in a long term context

  42 mins