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