Strategic value consulting

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Do you know the value impact?

All business decisions impact value, but do you know by how much? Applying a value lens to your most important business decisions brings stakeholder value impacts into clearer focus to help:

  • Improve decision-making
  • Build stronger consensus and alignment among stakeholders
  • Increase returns on your most important corporate and capital strategies

Applying a value lens

Did you know that one-third of invested capital typically generates more than 100 percent of value, while one-third of capital consumes value?

PwC Value Consulting specialists analyze your business’s current state value performance through two lenses: outside-in, and inside-out.

Our outside-in lens looks at value performance through the eyes of investors to reveal what is driving shareholder returns, investor expectations embedded in the share price, and what it will take for a company to exceed these expectations and drive the long-term value creation that benefits stakeholders.

Looking from the inside out and through the eyes of management, we use company and industry data to produce a value heat map that shows at a granular level where value is being created or consumed within the organization and the industry.

Understanding current state value performance both from an investor and company perspective uncovers opportunities to drive growth, improve margins, and increase capital efficiency centered on promoting value creation.

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How PwC can help

Creating or preserving value is usually the end-state objective—oftentimes unspoken or ill-defined—of nearly every management decision. The business manager’s version of the Hippocratic Oath is to do no harm to value.

When the link between a management decision and the potential value impact must be clearly illuminated, PwC’s value consulting group can help. Our professionals are trained in corporate finance and valuation theory. We leverage practical experience advising clients on finance and valuation to help you:

  • Frame relevant value questions
  • Quantify answers to those questions
  • Craft communication strategies to address different stakeholders, such as senior management, Board members, and investors or lenders

Measuring value performance and understanding the value impact

Value performance

With the PwC Valuation IQ research platform, PwC Value Consulting specialists provide an outside-in perspective on your business for the capital markets, and deliver custom analytics for a company level, inside-out perspective. Here’s how we do it:

  • We identify how, when and where value creation is occurring based on analysis of capital returns, adjusted for GAAP to cash items. Analysis may be done at a consolidated level, or by division, geography, product, etc.
  • We analyze total shareholder returns based on business performance metrics such as required and excess returns on capital, changes in invested capital, revenue and margin growth, as well as the capital market’s reaction to that performance.
  • We deliver customized research that includes merger and acquisition trends, public trading trends, investment ownership, capital structure movement, industry trends.

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Understanding the value impact

We work with you to apply a value lens to decision-making across your organization, bringing stakeholder value impacts into sharper focus, building stronger consensus, improving communication to help your business increase its returns on corporate and capital strategies. Explore the potential value impact across the following dimensions:
 

Corporate strategy

  • Frame relevant value questions and craft solutions
  • Value future state values under different strategic paths
  • Value management optionality
  • Improve investor communications
  • Quantify hard to quantify benefits (e.g., value of a sustainability initiative)
  • Apply advanced financial modeling
  • Measuring management performance based on value creation
  • Deploy capital and value projects more efficiently using Project Portfolio Optimization (PPO), a proprietary platform that uses state-of-the-art tools and methodologies.

Deals

  • In an M&A or divestitures context, "value diligence" on third-party valuations (client or financial advisor) and independent development of value ranges for target business.

Capital strategy

  • Cost of capital and capital structure analysis
  • Value impact of:
    • Dividend policy
    • Divestitures
    • Investor activism
    • IPO strategy

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Contact us

Larry Jones

Principal, PwC US

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