Based on the book The Outsiders, the best value enhancement strategy for businesses includes a focus on capital allocation and per-share value, emphasis on cash flows over reported earnings, and a decentralized approach to operations. CEOs should also be patient and disciplined when it comes to acquisitions, even if it means waiting for years to identify the right investment opportunity. Additionally, they should be willing to shrink the company size and share base to increase per-share value. Other strategies include the use of leverage to fund acquisitions, improving margins and profitability quickly after acquisitions, and paying off loans ahead of schedule.

stars icon Ask another question
This question was asked on the following resource:

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

A book that received high praise from Warren Buffett, The Outsiders chronicles the unconventional te...

View summary
resource preview

Download and customize more than 500 business templates

Start here ⬇️

Go to dashboard to view and download stunning resources

Download