Corporate Finance: The Basics is a concise introduction to the inner workings of finance at the company level. It aims to take the fear out of corporate finance and add the fun in, presenting the subject in a way that is simple to grasp and easy to digest. Its aim is to explain – and demystify – the essential ideas of corporate finance, avoiding the heavy use of maths and formulae. The calculations and figures in the book are purely to illustrate fundamental concepts, appealing to readers’ common sense, rather than stretching their ability to do "number-crunching".
This fully revised edition takes into account the most recent developments in the corporate financial landscape, including: the longer-term ramifications of the 2008 financial crisis, the impact of the Covid-19 pandemic, rising inflation and the current economic climate, and the effect of environmental, social and governance (ESG) on a company’s financial decisions. A brand-new chapter which seeks to answer the question of how to manage growing businesses from a finance perspective is also included.
Through the use of a subject map, this book explains how the key components of the subject are connected with each other, strengthening the reader’s understanding. This book is the ideal introduction for anyone looking for a short yet scholarly overview of corporate finance.
Introduction 1. Financial Statements 2. Financial Decisions and Investment Criteria 3. Free Cash Flows 4. Net Working Capital Management 5. Debt 6. Equity 7. Mergers and Acquisitions (I) 8. Mergers and Acquisitions (II) 9. Corporate Finance for Growing Businesses 10. Corporate Finance: The Big Picture
Biography
Terence C.M. Tse is Professor of Finance at Hult International Business School. Terence is also a co-founder and Executive Director of Nexus FrontierTech, an AI company. In addition, he is an affiliated professor at ESCP Business School and Cotrugli Business School.
“Corporate finance is a complex subject and it is often misunderstood. Dr Tse’s contribution is to simplify (in a good way) finance and get to the essence of what really matters. It is an important read for those who want to better understand how finance impacts corporate decisions.”
Christophe Y. Le Caillec, Deputy CFO at American Express
“In his usual energetic fashion, Professor Tse elegantly walks us through the ever-important corporate finance theory, providing insightful examples to illuminate its every-day use. Given global uncertainties, I found his focus on important themes – such as liquidity, working capital and free cash flow management – particularly pertinent.”
Christian Leibl, Managing Director, Head of Corporate Solutions Group EMEA, SMBC Bank International
“A mandatory read for entrepreneurs, both on their journey or starting out. The clarity and simplicity around financial concepts that should be front of mind and key to running and scaling any successful enterprise, in particular high growth businesses. All Tech entrepreneurs or otherwise should keep this as a valued reminder on their desk to focus on the basics!”
Andrea Acerbi, Partner, QVentures
