A critical starting point for shareholder value management is to have a clear understanding of a company's current value and where value is created or lost within the organization. While accounting metrics are useful for certain purposes, they are insufficient to understand value creation. Value creation requires an economic analysis that incorporates current and future cash flows, investment requirements, and business risks.

L.E.K. establishes the value of a business unit (BU) or line of business (LOB) to understand its true economic impact on the company. We also assess the intrinsic value of a company's strategy to quantify the expected returns from management's business plan. Using our financial modeling tools, we help executives understand how changes in strategy or the market will impact shareholder value. Business leaders can also use this information to articulate their corporate strategy in a way that resonates with investors.

Examples of our business valuation services include:

Please contact us at finance@lek.com for additional information.