Achieving Fair Value: How Companies Can Better Manage Their Relationships with Investors
The fair value process vi
Introduction: What is ‘‘fair value’’ and why does it matter? 1
Part One: The Imperative for a Fair Value Strategy 7
1 Getting the goals right 9
What should management be trying to achieve on behalf of shareholders?
2 Why do the markets get it wrong? 21
Why do markets fail to identify fair value?
3 Understanding the institutional fund manager 47
Why do fund managers behave as they do and what can management do about it?
Part Two: The Building Blocks of Fair Value 69
4 Towards a fair value strategy 71
Understanding the fair value process
5 Determining fair value 81
How do you know when your company is fairly valued?
6 Targeting value-determining investors 119
Identifying the shareholders that matter
7 Profiling value-determining investors 135
Getting to know the culprits
Part Three: Delivering a Fair Value Strategy 147
8 Towards fair value levers 149
Knowing a good lever from a bad lever
9 Deciding how much to tell investors 163
When ignorance is not bliss
10 Deciding how to tell investors 187
The art of managing communications channels
11 The role of management quality 201
Setting the fair value context
Part Four: The Challenge of Managing for Fair Value 221
12 Managing a fair value strategy 223
The challenge of coordination
13 What to expect from the next decade 231