Successfully manages the financial operations of the business environment
Corporate finance is responsible for analyzing value creation and wealth in the business world, whether for fundraising, investment or other financial objectives.
Today, these processes take place in a context of high uncertainty marked by the irruption of technology in the sector.
Next, we talk about the key elements that must be taken into account in order to succeed in corporate finance management in the face of this new paradigm.
Make an accurate assessment
An investment decision should always be based on a rigorous assessment that provides a true picture of the organization or project in which you intend to invest. The objective of company valuation is to accurately assess the value of the shares being invested in order to reduce risks and maximise the return on the operation.
To this end, the debt must be analysed, a detailed projection of the creation of value must be made according to the typology of the investment project and all associated internal or external risks and elements must be evaluated.
Know the capital markets
Depending on the characteristics of the assets, financial transactions may be subject to greater or lesser volatility and, as a result, to greater or lesser risk. When managing corporate finance, it is essential to have in-depth knowledge of the functioning of capital markets and their different typologies in order to correctly evaluate investment possibilities.
With regard to asset categories, fixed income is usually linked to safer investments that may be less profitable, while equities and derivatives are associated with greater volatility.
Properly manage risk capital
Venture capital represents one of the assets with the greatest potential for large investors. This asset is issued by emerging companies in a growth phase that need financing to consolidate their activity and thereby increase their value.
Through the purchase of venture capital, the investor becomes the owner of the assets of these companies, which represents a great financial opportunity as well as a high risk given the incipient situation of the issuing entities. For this reason, it is important to understand all the aspects surrounding this type of investment before making a decision.
Integrate the latest digital tools
Digitization has redesigned all the elements that make up organizations, with no exception for financial operations. Digital resources offer competitive advantages in the way investment operations are organised and managed.
Thanks to artificial intelligence, blockchain, crowdfunding or fintech, financial processes have acquired new dimensions of collaboration, automation and efficiency that maximize investment results. Integrating the latest technologies in the financial department will not only help it to be better connected with the rest of the company, but also with the rest of the financial environment.
Have managerial skills
Every financial executive must have managerial skills, as he or she must assume the responsibility of leading and negotiating financial operations. Management skills are key during any appraisal process, presentation to potential investors or negotiation.
In order to manage these operations effectively, the success factors of the project, the most appropriate negotiation techniques, the business objectives and the results to be achieved must be known.