What is value ?

Corporate value is best defined as the present value of future cash flows. Shareholder value, in turn, is measured by corporate value less present value of debt.

How does restructuring create or re-create value for shareholders?

1)Business portfolio restructuring
2)Financial restructuring
3)Organisational restructuring
4)Operational restructuring

1)Business portfolio restructuring
It is imperative for management of a multi-business company to know which business are creating value and which are destroying value. A business is creating / destroying value if the value generated is greater / lesser than the capital invested.

2)Financial restructuring
Financial restructuring is generally aimed at rearranging the financial commitments of the company to match its underlying (restructured) cash flows, so as to achieve the following objectives.

> Preserve going concern and maintain / enhance stakeholder value.
> Ensure stakeholders are financially better off, compared to , say liquidation or "do nothing".
> Equitable return/ recovery to all stakeholders.
> Good chance of realising the enhanced return.

Financial arrangement may entail measures ranging from simple debt rescheduling and security enhancement to debt waiver,debt equity conversion and other creative schemes.There are a number of mechanisms for carrying out a financial restructuring exercise. Which mechanism to adopt depends on the financial distress level of the company and recovery potential to stakeholders.


3)Organisational Restructuring
A restructuring exercise will only be successful if the organisation structure is revamped or realingned to support the new corporate and business strategy. New management may need to be installed in order to beef up credibility and core competencies. Management may take this opportunity to rightsize the organisation to cut cost and raise productivity.


4)Operational Restructuring
A short-term profit improvement programme can be implemented to stop cash hemorrhage. Various cost reduction exercise such reduction of significant overhead costs, integration of facilities and shedding of loss-making operations can be carried out. Revenue enhancement can also be implemented through utilisation of excess capacity and optimising product / customer mix and pricing. However, the longer term, a process improvement exercise needs to be undertaken to improve efficiency and productivity, and reduce cost on a permanent basis.

Key Retaining Factors - Soft skills

Entrepreneur Skills
Identifies future needs,trends and business opportunities and takes initiatives to develop viable business

Strategy Translation
Transforms company or department mission and goals into practical action plans and prioritise accordingly to enable accomplishment of tasks in a timely manner

Resource Integration
Appropriately utilizes manpower,facilities and other resources to accomplish company business plans.

Innovativeness
Able to apply new ways of solving problems without being restricted by existing rules and preconceived ideas to manage changing environment.

Personal Integrity
Always distinguishes personal ambition from company's interest, takes custodian of and protects company assets, maintains confidentiality of information and operates in the best interest of the company.

Negotiation
Uses a win-win approach and conflict resolutions skills to achieve a successful agreement in the best interest of the company.

Dining goes digital at INAMO

The innovative concept of interactive ordering system where diners place thier orders from an illustrated food and drinks menu projected on their table surface.

The interactive ordering system is the core of INAMO restaurant in London table can order taxis for you and show you bus maps. You can play battleships with your co-diner, should conversation flag.

Strike a Deal - Deadly Killer Applications (DKA)

Deadly Killer Applications (DKA) applies in business presentation, workgroup discussion, think tank committees, post graduate dissertation presentation, charity fund raising, road shows and sales campaign

1)Focus - target audience / group which is your trustee board, board of directors, nominator,funder,moderator,sponsors,investor etc.


2)Objective - purpose of the report, speech, letter, presentation, teaser, information memorandum is in order to achieve the desired end results or bottom line.

3)Bottom line - make it or break it i.e. realised sales / secure investments / funding / necessary approvals / mandates / gradings OR conviction only NOT COMMITMENT from counter parties (investors;bankers;certification bodies;sponsors; voters etc.)

Radical Investing

Warren buffet famous maxim "Sell when others are greedy and buy when they're afraid"

Talent management

High performers needed to feel that there was alignment of their talents with their job functions. The old maxim still holds true that people don't leave company, they leave their bosses.

Business Model + Innovation

Open business model Dr. Chesbrough gives a new perspective of companies moneytizing innovative intellectual assets (IP) in an open innovation landscape, focusing on creation of value rather than merely financial return.

Sun Bear

They are eight bear species in the world.

1)Sun bear
2)Asiatic black bear
3)Sloth bear
4)Andean bear
5)Polar bear
6)Panda bear
7)North American black bear
8)Spectacled bear

Sun bears don't hibernate unlike their temperate cousins and have long tongues for extracting honey and insects. Sun bears are omnivores, they eat beetles, honey, seeds, termites and fruits.

Insolvency 101

Liquidator - selling the assets to pay off creditors and winding up the company.

Receiver - aiming at to sell the company as a going concern.

Administrator - planning for the organisation's survival or restructuring the business on a more advantageous basis.

Iconoclasts

Leading neuroscientist Dr. Gregory Berns explains the science behind thinking differently - iconoclasts.

The most creative and innovative ideas have come from individuals who do what others say can not be done

Young Walt Disney spent hours staring at his drawing on a movie screen as his imagined motion pictures and illustrations combining in a revolutionary way.

Forensic Accountant

Shareholder believes the company's management is hiding assets. A business owner suspects an employee of stealing company money. A company's partner want to split up the business, but are battling over its valuation.

Whom do they turn to for help to track the money trail? ....... Forensic Accountant
Just like forensic specialists who help police find vital links between evidence and criminals to enable convictions, forensic accountant do the same on money trail.

Forensic accountant possesses three basic skills that is accounting, auditing and investigative skills. Forensic accountant are usually involved in three types of financial work:-

1)fraud investigations such as embezzlement

2)shareholder's dispute such as a dispute over a company's value

3)economic damages such as determining how much lost profit a business has suffered as a result of breach of contract.