Valuation Eleanor Bloxham on 08 May 2011 01:02 pm
Corporate Valuation
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Corporate Valuation is a topic of importance to not only shareholders but all stakeholders: managers, employees, creditors, communities, customers and suppliers, etc.
Jim McRitchie, publisher of corpgov.net, recently reviewed Alex Lajoux and Bob Monks’ new book on Corporate Valuation which should be in your library if valuation topics matter to you (and they should).
Please see Jim’s excellent post and review here: http://corpgov.net/?tag=valuation
The book Corporate Valuation provides a view on all the major methodologies of valuation. Here’s a link to Monks and Lajoux’s book if you don’t have it: http://www.amazon.com/Corporate-Valuation-Portfolio-Investment-Governance/dp/1576603172/ref=sr_1_1?ie=UTF8&s=books&qid=1304871947&sr=1-1
One of the surprises for Jim in the book was to find that I was credited with the development of one of the valuation methodologies featured in the book, a relatively new valuation methodology (which I wrote about and documented in the book Economic Value Management published in 2002 http://www.amazon.com/exec/obidos/ASIN/0471354260/thevalueallia-20).
In case you are also unfamiliar with my work in this area, the valuation methodology I developed takes into account the two-way value exchanges between the corporation and all its stakeholders as well as the valuation of the separate entities themselves, something I describe as the three-way mirror.
My methodology can be used by anyone and all stakeholders because unlike other approaches, it is much more comprehenisive in its thinking – and provides a toolset for a variety of stakeholders to assess the corporation from their own and multiple perspectives.
The methodology and approach go into enough detail that it can be especially useful for managers who already are close to the issues but need a framework to ensure they aren’t ignoring very important, relevant factors in the valuation process.
Recently I wrote for the inaugural edition of the Journal of Sustainable Finance (a peer reviewed journal) showing how the valuaton approach I had developed early in the last decade was essential for approaching corporate sustainability in a comprehensive and holistic way. http://www.ingentaconnect.com/content/earthscan/jsfi/2011/00000001/00000001/art00007;jsessionid=5d3nlijhk67dq.alice
Historically speaking, Alex Lajoux and Bob Monk’s reference to my work in their book on Corporate Valuation highlights the fact that my work pre-dates more recent shared value concepts and provides greater depth in laying out a specific valuation framework. Of course, I am very grateful to Lajoux and Monks for recognizing my work in modeling the corporation and valuation in this way.
If you haven’t yet read it, I know the book Corporate Valuation http://www.amazon.com/Corporate-Valuation-Portfolio-Investment-Governance/dp/1576603172/ref=sr_1_1?ie=UTF8&s=books&qid=1304871947&sr=1-1 will surprise you as it did Jim in numerous ways – with information on valuation approaches, insights and methodologies with which you may not yet be familiar.
Certainly, it will get you to rethink what you may have thought you knew on this very important topic.
The Value Alliance and Corporate Governance Alliance www.thevaluealliance.com
Eleanor Bloxham www.eleanorbloxham.com
Copyright 2010 The Value Alliance Company. All rights reserved.
2 Responses to “Corporate Valuation”
on 08 May 2011 at 8:32 pm 1.Alexandra R. Lajoux said …
Dear Eleanor:
It’s high time that you got the recognition you deserve from your pioneering work in corporate valuation. Bob Monks and I, along with Jim McRitchie, salute you!
Sincerely,
Alex
Alexandra R. Lajoux
PS: Thank you for mentioning our book.
on 06 Jul 2011 at 9:24 am 2.Dave Guerra said …
I just read your new Fortune Money article How to Get Paid Like a CEO and it is truly astonishing. Greed and Selfish Leadership is super-alive and well at the top of especially U.S. companies. We need servant leadership more than ever. I would have to concur with Alexandra – great job!
Dave Guerra