Corporate Finance

Over the last 30 years, the role of the CFO has been transformed from chief treasurer and accountant of the company to first lieutenant and closest partner to the CEO. However, the growing role of the CFO in the formulation and implementation of corporate strategy has revealed the limitations of most analytical tools currently at his/her disposal.

At Verea Group LLC we believe that modern CFOs deserve better decision support, empowering them to fulfill much more successfully their strategic roles. A company’s share price is determined by investors’ expectations for its capacity to create shareholder value. The CFO function should enable connecting a company’s strategy and implementation plans directly to shareholder value creation objectives.

To support the CFO function in this endeavor, Verea Group LLC provides a few distinct, but interrelated lines of service:

Under Total Shareholder Value Created, we help management develop and implement a set of relative and absolute indicators measuring the past and future creation of shareholder value at the firm.

Under the Shareholder Value Creation Plan, we help senior management decide how much shareholder value they plan to create over the next few years and what financial results need to be achieved. To assure these plans’ operational feasibility, we work with the CFO function to connect them directly with R&D, Marketing, Sales, and Operations Planning.

Under Expectations Adjusted Net Present Value, we help companies implement capital investment project evaluation and selection processes that assure that the selected projects would be value accretive if implemented.

Using Real Options Analysis, we help companies rigorously identify, evaluate, and execute a broad range of strategic options with direct impact on shareholder value creation.

Despite significant progress, key decision processes are still impacted by: cognitive and emotional biases; vague decision criteria; corporate politics; “garbage in, garbage out”; false precision; oversimplification; weak connection with execution; and many more shortcomings. At Verea Group LLC we support the CFO function as a driving force to improve strategic decision-making. What we deliver is better—not more voluminous—analytics, and better—not more burdensome—decision methodologies.