Financial Strategy

On successful completion of this module students should be able to:

1. Explain the role and nature of financial strategy and its relationship to shareholder value.
2. Analyse the formulation of financial strategy for an organisation in relation to its objectives and internal and external constraints.
3. Evaluate investment opportunities through the use of appropriate techniques.
4. Determine the financial value of a business by reference to a range of valuation methods.
5. Evaluate the motives for, and financial implications of, mergers and acquisitions, ownership restructuring and leverage buyouts.

The module is concerned with the role of financial strategy in the investing, financing and resource-allocation decisions within an organization. Formulation of financial strategy is a complex process involving aspects of financial decision making, investment appraisal, assessing risk and return, and identifying sources of funding. The module provides an understanding of the way in which financial strategy can add value to the overall corporate strategy used by an organization. Relevant theories of corporate finance are addressed, and there is coverage of topics such as the valuation of businesses, and mergers, acquisitions and takeovers.

​​Objectives of the organization


Investment appraisal methods


Evaluation of investments: steps and techniques


Capital budgeting


Sources of finance and the cost of capital


Capital structure theories


Working capital funding strategies


Financing decisions and efficient capital markets


The business life cycle and financial strategy


Dividends, earnings and share valuation


Mergers and takeovers, ownership restructuring and leveraged buyouts


Business valuations techniques


Corporate governance

This module is at CQFW Level 6