Analyse théorique et pratique d'un modèle de Value Enhancement.

Abstract

Company valuation is generally perceived as a mandatory formality during certain events of the company’s lifetime, most of the time for legal or fiscal purposes: group reorganization, contribution in kind, succession, shareholders’ dispute… Why not rather consider it as a real driver that should be maximized? In other words, why not set managerial decisions and goals according to their impact on the company value? This is the philosophy behind the "Value Enhancement", subject of this thesis.

Value Enhancement, also called “Value Based Management”, is a management strategy that ensures that corporations are run consistently on value. Developed in the late 80s, this approach, although criticized for its somehow very capitalist concept, has slowly become one of the most validated and supported management method for companies.

This paper has been written as part of the project of BDO Corporate Finance Belgium, a finance consulting company part of the international BDO network, to launch a Value Enhancement service for its clients.

The goal of this both theoretical and applied thesis will first be to analyze the mathematical aspect behind Value Enhancement and develop a theoretical model of company Value Enhancement. For the practical part, we will start by writing out a concrete list of real-life actions allowing us to increase the value of our company given our mathematical model. Finally, we will put everything into action via a whole practical case of Value Enhancement for a client of BDO Corporate Finance.