2 Jan 2008 11:13:55 GMT McKinsey on Finance is a quarterly publication written by experts and practitioners in McKinsey and Company's Corporate Finance practice. This publication offers readers insights into value-creating strategies and the translation of those strategies into company performance. McKinsey on Finance articles are available online at www.mckinseyquarterly.com. http://www.mckinseyquarterly.com McKinsey and Company Finance http://blogs.law.harvard.edu/tech/rss en-us McKinsey on Finance McKinsey on Finance is a quarterly publication written by experts and practitioners in McKinsey and Company's Corporate Finance practice. This publication offers readers insights into value-creating strategies and the translation of those strategies into company performance. McKinsey on Finance articles are available online at www.mckinseyquarterly.com. McKinsey on Finance no Dennis_Swinford@mckinsey.com The cost of capital hasn’t increased so far in the downturn—and didn’t in past recessions. 28 December 2008 13:22:10 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 8:43 no Efforts to lower carbon emissions will affect different industries differently, depending on the level of carbon reduction required, industry responses to emerging technologies, changing customer behaviors, and regulation, and individual company current positioning and ability to respond. Executives should take steps immediately in order to be competitive in a low-carbon future. 27 November 2008 13:22:10 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 17:08 no In our April 2007 podcast, Preparing for the next downturn, the authors looked at what capabilities and strategies enabled companies to endure—and even thrive—in past downturns.The text of this recording can be found at www.mckinseyquarterly.com. 27 October 2008 19:22:10 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 10:27 no In our April 2008 podcast, Preparing for a slump in earnings, the authors observed that historic trends suggest earnings may fall more than most executives expect. Companies should prepare for steeper declines and take steps to strengthen their positions when times improve. The text of this recording can be found at www.mckinseyquarterly.com. 27 October 2008 18:22:10 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 8:18 no Traditional methods of analyzing TRS are flawed. There’s a better way. 29 September 2008 13:54:16 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 14:15 no Some Asian companies are better at executing capital projects than are rivals elsewhere. What lessons can others learn from them? 27 August 2008 13:54:16 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 14:15 no The division structure can mask big differences in the performance of smaller units. A finer-grained approach can better show where value comes from. 28 July 2008 13:54:16 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 00:00 no China’s companies are expanding the focus of their outbound M&A, but so far they have struggled to create value. 23 Jun 2008 14:54:16 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 00:00 no Communicating with investors can take up a lot of an executive’s time. In our May 2008 podcast, the authors observe that executives spend too much time talking with those who don’t matter—and offer a prescription for identifying those who do. The text of this recording can be found at www.mckinseyquarterly.com. 21 May 2008 09:00:00 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 00:00 no In our April 2008 podcast, Preparing for a slump in earnings, the authors observe that historic trends suggest earnings may fall more than most executives expect. Companies should prepare for steeper declines and take steps to strengthen their positions when times improve. The text of this recording can be found at www.mckinseyquarterly.com. 16 Apr 2008 09:00:00 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 00:00 no The authors argue that picking up the pace of M&A requires big changes in a company’s processes and organization—even if the deals are smaller. The text of this recording can be found at www.mckinseyquarterly.com. 23 Mar 2008 09:00:00 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management 00:00 no This article is adapted from a speech given by the author in the summer of 2007 at a conference at the Federal Reserve Bank of San Francisco. The text of this recording can be found at www.mckinseyquarterly.com. Tues, 05 Feb 2008 09:00:00 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Our data finds that reports of the demise of the M&A boom may be greatly exaggerated. But to keep it going, companies must work even harder to ensure that deals create value. Thur, 03 Jan 2008 09:00:00 GMT http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Regulators may worry when Arab investors acquire stakes in western companies, yet vast reserves of petrodollars have kept down interest rates and buoyed financial assets. What's the broader effect of the surge in petrodollars? http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no It can be a frustrating exercise, but there are ways to increase its value. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no When the S&P 500 stretched above 1,500 in May 2007, it returned to levels not seen since the tech bubble in 2000. While it has since subsided, at this writing it is still quite strong. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Investors reward high-performing companies that shift their strategic focus prudently — even if that means lower returns or slower growth. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no A fine-grained approach to growth is essential for making the right choices about where to compete. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Corporate directors want more information about their companies and industries, and they say that investments by private-equity firms improve governance. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Companies that stick to valuation basics can preemptively capture any value that would make them attractive for takeover bids. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Reforms that attracted little attention in the Western world mark a major step forward in the modernization of China’s capital markets. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Once companies reach a certain size, setting realistic performance aspirations gets a bit trickier. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Companies aren’t getting the most out of their offshoring programs. Key design changes would help. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no In a buoyant economy, the next recession seems far off. But managers who prepare during good times can improve their companies’ chances to endure—or thrive in—the eventual downturn. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no As investors demand that companies actively manage their business portfolios, executives must increasingly balance investment opportunities against the capital that’s available to finance them. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no When changes in accounting rules provide no new information, they don’t register with investors. Nor should they lead managers to shift focus. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Investors and fund managers build entire portfolios around the premise that growth stocks grow faster than value stocks. The problem is that they don’t. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no A cohesive top-management team is essential for integrating acquisitions successfully. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no CFOs can bring much-needed skills to the CEO role, but the career path isn’t always a direct one. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no A company’s ratio of debt to equity should support its business strategy, not help it pursue tax breaks. Here’s how to get the balance right. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no As companies turn their attention from compliance to growth and innovation, boards must focus on strategy. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Finance theory isn’t enough when companies set their expectations for reasonable returns on invested capital. A long-term analysis of market and industry trends can help. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no The latest boom in merger activity appears to be creating more value for the shareholders of the acquiring companies. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no The conditions are right for China’s nascent M&A market to flourish. Companies should try a new approach to deal making. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no The oil and gas industry has a history of over investing at the top of a cycle. This time it should break the habit. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Emotions can drive market behavior in a few short-lived situations. But fundamentals still rule. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Earnings per share and share prices aren’t the whole story—particularly in the medium and long term. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no TRS doesn’t reflect a company’s performance or health. What does? http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no In the short term, emotions influence market pricing. A simple model explains short-term deviations from fundamentals. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no M&A executives at the most successful US companies understand not only how acquisitions create value but also how to enlist the support of the organization. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no It is difficult—but vital—for managers to strike a balance between the short and long terms. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Companies attracted to the country’s potential must do more than merely transplant products and systems that have succeeded elsewhere. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Simply getting bigger won't produce a higher valuation multiple. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Markets may expect solid performance over the short term, but they also value sustained performance over the long term. How can companies manage both time frames? http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Psychological biases can make it difficult to get out of an ailing business. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Borrowing key principles from lean manufacturing can help the finance function to eliminate waste. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Used early in negotiations, a third-party clean team can help companies assess a deal and protect sensitive data. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no It takes less time than you think for a clean team to make valuable contributions to the integration of businesses. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Companies provide earnings guidance with a variety of expectations and most of them don't hold up. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no Companies shouldn't confuse the value created by returning cash to shareholders with the value created by actual operational improvements. After all, the market doesn't. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no High price-to-earnings ratios are about more than growth. Understanding the ingredients that go into a strong multiple can help executives make the most of this strategic tool. http://www.mckinseyquarterly.com business, finance, strategy, corporate, mergers, acquisitions, value, valuation, stocks, portfolio, CEO, management no