Corporate Finance

The goal of any corporation is to maximize shareholder value. Corporate finance is an area of finance that looks at various sources of funding, and the corporations’ capital structure. It is also concerned with what types of actions the management and leaders of a company take to try to increase the value of the company to shareholders.

Orchard offers in-depth analysis and opinions about individual companies, as well as the corporate finance market as a whole. Readers can learn about what trends are occurring now, what to expect in the future, and much more.

This section features a variety of different topics related to corporate finance, including the following:

GAAP and IFRS Accounting

Generally Accepted Accounting Principles (GAAP) was the standard in the US for years, though that is quickly changing. The International Financials Reporting Standards (IFRS) has been popular throughout Europe and other areas, and the US is also moving to adopt it going forward. We cover these standards regularly in this magazine.

Valuation

When determining whether to invest in a specific company or a fund, getting the right valuation in place is critical. Our writers provide tips and advice on how to determine the value of a corporation prior to investing your money.

Venture Capital Cycle

Looking at the lifecycle of an investment is critical, especially for long-term investments like venture capital. Getting in at the early stages of a company with lots of potential can yield massive returns when done properly.

internal rate of return

Having an accurate internal rate of return (IRR) will help better evaluate the potential risk and reward of investing in a particular company. You can learn more about the IRR, and how it should factor into your financial decision-making process, in this section.

Long & Short-Term Financial Planning

When looking at corporate finance, it is important to look at both the long and short-term outlooks. Unlike most personal finance situations, companies often face drastically different long and short-term expectations. For example, companies often have bright futures, but only if they can get through a difficult challenge in the short term. Factoring in these types of things can help to ensure you are making the right investment decisions for today, and the future.

There are many various investment strategies when it comes to corporate finance. Our writers look closely at this sector and provide insights on how to correctly assess the right balance of risk and reward for clients interested in corporate finance.

Last articles on Corporate Finance

17 May 2017

Accounting: “Just Accounting”

Accounting is the making sense of cash flows through time and the assignment of that cash flow to income through processes that assign permanence and recurrence to these cash flows. We do not want to see large volatility in accounting that can be accounted for through accounting reasons alone. So we use methods to smooth the income to reflect an operating business model that does not really have that volatility....

28 Apr 2017

Venture College Admissions on Harvard Truth’s Current

Reference: The Money of Invention: How Venture Capital Creates New Wealth by Paul A. Gompers and Josh Lerner. The venture capital cycle is best explained via the college admissions process in the United States where we see young people become their own ventures from the incubation process which has many similarities to that of young firms asking for money to be invested in them. We see that young people in...

24 Mar 2017

Corporate Finance: Valuation for whom and for what

Corporate finance is the study of value over time and how this value grows within a company and what companies should do to budget their capital in the interest of increasing value. Generally, we look at net present value as a way of discounting cash flows in the future to a present aggregate that represents the value of the choice to undergo the project, where if this value is positive...