Publications & Teaching
The Blue Line Imperative
What Managing for Value Really Means
Do you wonder why your value initiatives aren't providing the payoff you'd hoped for? Could it be because you've been thinking about value all wrong? According to this groundbreaking guide, there's a very good chance that you have. Using examples from leading companies worldwide, The Blue Line Imperative explains why every decision a company makes either creates value or detracts from it, and why, if they hope to survive and thrive in today's increasingly competitive global marketplace, company leaders must make value-creation the centerpiece of every business decision.
Becoming A
Top manager
Based on themes from INSEAD's popular Transition to General Management programme, authors Kevin Kaiser, Michael Pich, and I.J. Schecter offer sound advice and practical insights for those looking to move to senior general management roles. By following the stories of three managers making the transition to general management, Becoming A Top Manager highlights not only the most crucial aspects of becoming a successful general manager, but also the necessary mindset changes required—both on a personal and professional level—that will ultimately translate into ongoing success.
In the Classroom
Kevin teaches a range of topics, at Wharton and the Amsterdam Institute of Finance (AIF) as well as for his various private clients. Favorite classes to teach include:
Valuation
In Kevin’s Valuation courses, participants are exposed to a conceptually challenging curriculum, exploring both the theoretical basis and practical application of the major elements of discounted cash flow valuation. At the conclusion of the course, each participant has the skills and knowledge necessary to rigorously estimate the value of a company, employing the principles of finance and the discipline of the scientific method. Participants learn to differentiate between long-term value-creating strategies and short-term indicators, such as share price, earnings per share, market share, revenue growth, increased profit and customer satisfaction. Above all, they learn to ask the questions that will build value for the future.
Selected key learnings from this course:
Understand the “why we do it that way” behind valuation concepts you practice daily
Enhance your awareness of the key finance principles which underpin our approach for estimating the discount rate used in valuation
Develop the capability to distinguish value creation from value destruction to ensure competitive success and the long-term survival of your company
Learn and practice a process for conducting a data-driven, theoretically correct valuation
Be able to handle cross-border, emerging market, and other complicated valuations
Question common practices and identify common mistakes and misunderstandings
Learn more or sign up for this course at the AIF here:
Distressed Investing and Value Creation
In Kevin’s Distressed Investing courses, participants explore the fundamentals of value investing as applied to situations of financial distress. In order to do this, the essential question is whether the price of the distressed asset (debt or equity, but we most typically focus on debt in this course) is above or below the asset’s intrinsic value. This requires an assessment of the value of the entity as well as assessments of the value of each individual claim. Once the business value is assessed, the debt capacity must be examined, which will build upon the company cash flow analysis to estimate whether, when and on which debt securities the business is expected to default. We also examine the content of the typical ‘cap table’ which provides a ‘snapshot’ of the financial situation and perform a ‘waterfall’ analysis to assess where the value will ‘fall’ in the capital structure in order to understand which security might be most or least interesting as an investment option based upon the difference between current market price and intrinsic value.
Once we’ve identified the potential investment opportunity, we then develop the investment thesis for a given security. This requires an assessment of the likely restructuring and turnaround proposals, such as amendments to extend maturity, debt for equity exchange offers, or seeking protection in the legal insolvency/restructuring regime. We delve into a short description of the legal environment (including a base understanding of the US Chapter 11 and similar regimes in other countries), as well as an examination of the game theoretic behaviors which will impact both the restructuring of the business and the deal-making across the capital structure. Finally, as negotiation is an essential skill of the distressed investor, we will also highlight the important ‘soft skills’ associated with earning an exceptional return on investment in special situations.
Selected key learnings from this course:
Explore the theory and practical application of investing in distressed situations
Develop a thorough understanding of the fundamentals of value investing
Estimate the fundamental value of a business using discounted cash flow valuation
Examine debt capacity and its implications for investors
Learn to use the content of the typical capitalization table
Gain the skills to perform a ‘waterfall’ analysis
Identify potential investment opportunities
Practice with building an investment thesis
Assess restructuring and turnaround proposals
Discuss the legal environment in distressed situations
Explore the game theory behind investing and restructuring in distressed situations
Improve your negotiation skills to earn an exceptional return on investment in special situations
Learn more or sign up for this course at Wharton here:
Shareholder Activism
Shareholder activism is not a neutral topic in finance. Some view shareholder activists as a source of value creation and a necessary check on publicly traded companies’ excesses or bad C-suite management, while others view these same activists as too aggressively focused on pushing for change for short-term gain. In this course, participants will understand how and why activist shareholders select their target companies and how companies in turn prepare for, and deal with, an activist campaign.
We will shed an objective light onto the features of a company, including how it is managed and whether it is creating or destroying value in its strategic and operating decisions and behaviors. In addition, the corporate governance structure plays a role in the extent to which a company might be an attractive activist target. While distinguishing good from bad corporate governance is an art form, we will discuss the typical identifiers that are associated with value destruction and those that attract activist attention. We will consider the steps and processes utilized by the activists in a campaign and identify those areas critical to unlocking, or potentially destroying, value.
Selected key learnings from this course:
Acquire a powerful conceptual foundation for what it means to create value
Develop the fundamentals for both value investing and value-based management
Discover the frameworks and tactics used by shareholder activists to identify and move on target companies
Recognize where and why shareholder activism may create or destroy value, and be better able to distinguish which is more likely in a given case
Learn how corporate boards and leadership prepare for activist campaigns directed at their company, and effective solutions for managing the process when it occurs
Become more knowledgeable about the roles of the various parties in shareholder activism beyond the activists, including proxy advisory firms, public relations firms, lawyers, and investment bankers
Learn more or sign up for this course at Wharton here: