Balance Sheet Management: The Least Understood Risk

Overview

Most organizations manage their income statement, but many virtually ignore the balance sheet until balance sheet problems create seemingly insurmountable emergencies. This session discusses how to analyze and manage your financial statements more holistically, allowing you to identify and correct balance sheet issues early. How do you choose whether to raise debt or equity? What are the key considerations and the advantages of each? What is the cost of capital? What are the ‘hidden’ balance sheet risks? We will also examine several crucial ideas you can incorporate into your analyses to enhance performance and reduce risk. If you want to enhance your corporate finance skills, this session is for you.

Highlights

Understanding your balance sheet
Analyze your balance sheet today and in the future
Plan your balance sheet structure
Properly balance debt and equity versus other funding sources
Know the balance sheet pitfalls and risks to avoid
Understand your cost of capital
Interpret your cost of capital
Evaluate the risks, pros and cons of debt
Know how to raise debt
Understand the risks, pros and cons of equity
Examine alternative methods to raise financing
Understand the decision process through real-world examples

Prerequisites

Some corporate finance classwork or experience is helpful

Designed For

CEOs, CFOs, Controllers, business owners, Board members, corporate financial managers, and professionals who advise them

Objectives

Understand the key concepts of proactively managing a balance sheet, raising capital, managing balance sheet risks and considerations when deciding between financing sources