Creating Value in M&As and JVs

A strategic and financial view

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Next available date: 5 July

The Creating Value in M&As and JVs program provides a strategic framework to create value in growth. Participants will develop an overall strategic view which opens doors to competing even more profitably in the new economy, balancing short-term tactical goals and long-term objectives.

Key components:

  • in-depth financial knowledge to further enhance the financial understanding of the participants and familiarize them thoroughly with advanced state-of-the-art concepts
  • stimulating brainstorming on managing innovation and disruption to equip the participants with a broad view of the major issues a modern company faces
  • integrated framework linking finance to strategy, decision-making, behavioral approach and leadership to provide a structural view on value creation in terms of rigorous financial variables
  • overall strategic view for an organization to consider both its overall view and the relationship between HQ and the different business units/subsidiaries/units, and among each other
  • long-term horizon for the financial and strategic choices to equip the participants with a deep understanding of such choices

In growing towards a broader strategic view, participants strengthen their financial leadership, bridging the gap between finance and strategy.

The topic approach is intense in a very applied way. Participants will be exposed to a series of techniques to improve their ability to assess different values and strategies. Participants will gradually evolve from straightforward Excel analysis to a more sophisticated financial planning that involves all the different aspects of the process of value creation.

Each day, participants will be presented with exercises and cases to solve, in rotating groups.

Program length
3 days

Day 1 09:00 – 17:30
Day 2 09:00 – 17:30
Day 3 09:00 – 17:30

How you will benefit. You will

  • improve your financial understanding to be able to participate in all aspects of your firm’s financial decision-making
  • enhance your understanding of managing innovation and disruption
  • create an integrated framework that links finance to strategy, decision making, behavioural approach and leadership
  • gain an overall strategic view on the various components of your organization
  • acquire a thorough understanding of the long-term implications for financial and strategic choices

 

Day 1 | The concept of value creation from a financial perspective
The focus is to provide a meaningful assessment of firm value, and to quantify the value creation dimension of the main financial policies, by means of:

  • a short refresher of financial principles:
  • a coherent framework to define and operationalize the concept of value creation, identifying the strategies that lead to it;
  • a toolkit approach to distinguish between value creation, profitability, growth, sustainability and market shares;
  • an integrated approach to focus on the benefits in cost of financing, operating, and joint activities;
  • a M&A deals analysis from both a long-term and short-term perspective, focusing on quantifying value creation; and
  • an exploration of international and trans-border financial decisions.

In the above, both the financial and the organizational approach will be considered. The organizational approach will focus on how a complex organization can minimize risk by choosing its type of structure. The financial approach will focus on how different units and HQ can offload risk by hedging and engaging in derivative transactions. An integrated framework considers the alternative sources of risk and the management of exposure, focusing on the alternative approaches: financial vs. operational hedge.

Risk Management will be linked to the financing of projects, providing an overall strategic framework to consider different sources of fund raising and their relations to the risks they face. The goal is to integrate strategically risk management and financing cost.

Day 2 | Managing the human side
The purpose of the 2nd day is to see how biases and human behavior affect the choice of growth and its implementation. We will lay out a framework for how to handle human behaviour and gain an understanding of the major behavioral biases affecting managers and owners. We will analyze them and see the relevance of their impact on managing and value creating behavior.

We will discuss how to handle biases related to team work and how to create a more effective board that manages and handles its biases. We will define leadership and the board level.

In a simulation participants will experience the Board level context in which an acquisition where one multinational player has acquired another company, leaving the board in crisis. The task is to lay out the global integration and expansion strategies, using a simulation that will allow participants to reflect upon the various pillars of M&A strategic design and implementation and assessing their effectiveness.

Day 3 | Growth and how to manage disruption
A key challenge for organizations is how to keep innovating and managing disruption risk. A distinction will be made between obsolescence risk, technological risk and disruption. We will discuss the main behavioral and rational constraints that make the management of such risks very difficult.

In our focus on value innovation, we will discuss how value creation is linked to value innovation. A set of tools is provided to understand and implement value innovation. We will consider strategic refocusing within the organizational structure and how to implement capturing value by innovating. Participants will learn how to apply the framework by following the three stages of corporate development.

In managing Obsolescence Risk we will examine the concept of value in the stock market and see the differences between value creation and stock market value. We will consider how markets prevent value creation and how to manage for value regardless of the market.

Subsequently, we will hone in on financial disruption: FinTech, TechFin and the New Financial Ecosystems. We will consider how traditional players can manage disruption. The goal is to create a common understanding of the game changers in the digital world and their implications for strategic approaches.

Finally, we will zoom in on the main drivers of innovation and their disruptive impact. We will perform a strength and weakness analysis, focusing on the key sources of competitive advantage. The goal is to develop an understanding about their strategic existence and rationale, and how they induce financial disruption. We will analyse the competitive scenario and the new ‘open architecture’ approach and its ability to generate synergies with the new disruptive forces.

After these 3 days, participants will profoundly grasp how growth, development and M&As/JVs can create a unique value proposition.

The 3-day Value Creation in M&As and JVs program is relevant for CEOs, CFOs, Board members, entrepreneurs, founders, consultants, and financial professionals dealing with mergers, acquisitions and joint ventures. Participants should have some valuation experience and be familiar with the basic valuation concepts, such as definition of free cash flows, the costs of capital, and the Capital Asset Pricing Model.

For those who do not have sufficient knowledge of valuation theory, AIF’sValuation program can serve as an introduction to the topic. 


Faculty

Massimo Massa

Massimo Massa is the Rothschild Chaired Professor of Banking and a Professor of Finance at INSEAD. He is the Co-Director of the Hoffmann Research Fund.   Professor Massa has been a consultant with several companies on strategic issues related to governance and corporate financial and growth strategies. He has extensive teaching experience in international finance, corporate…

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  • 3 days
  • € 3950
  • Strategy & Growth
  • English
  • NEW

Available dates

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For a more detailed program description and information regarding faculty please download the program document.



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