Operations Forensics

by Lai

ISBN: 9780262313018 | Copyright 2013

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Investors and analysts often need to look into a firm's operations more deeply than traditional financial statements and models allow. This book describes newly developed tools for using operations metrics to discern and influence the valuation of a firm. It is the first to present these techniques from a unified perspective: that of operations forensics, which looks at operations management not from the traditional point of view of a manager but from that of an investor or shareholder. After a discussion of financial statements and the useful but incomplete insights they provide, the book covers the three components of operations forensics: operational indicators, operations details that can predict future performance; operational due diligence, methods for verifying companies' claims about operational excellence and valuing their operational assets; and operational turnaround, an innovative approach to buyout and turnaround strategies. The text also offers brief reviews of operations management concepts, real-world examples of operations forensics, and a glossary. The mathematical material gradually increases in sophistication as the book progresses (but can be skipped without loss of continuity). Each chapter concludes with a "Takeaways and Toolkit" section, a brief summary of prior research, and suggestions for further reading. Operations forensics offers powerful tools and frameworks for financial analysts, private equity firms, managers, and consultants. This book provides a valuable resource for MBA students and practitioners. Downloadable supplementary material for instructors incudes figures form the text and 42 slides that can be used for class presentations.

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Cover (pg. Cover)
Brief Table of Contents (pg. v)
Detailed Contents (pg. vii)
Preface (pg. xvii)
Guide for the Reader (pg. xix)
Acknowledgments (pg. xxi)
1 Operations Forensics (pg. 3)
2 What Financial Statements May or May Not Reveal (pg. 17)
3 Indicators of Accounting Performance (pg. 41)
4 Indicators of Stock Market Performance (pg. 63)
5 Indicators of Disruption (pg. 77)
6 Indicators of Distress (pg. 85)
7 The Many Facets of Due Diligence (pg. 95)
8 Assessing the Customer Base (pg. 109)
9 Assessing Lean Management (pg. 123)
10 Assessing Risks (pg. 137)
11 Assessing Options (pg. 161)
12 Turning Around Purchasing (pg. 183)
13 Turning Around Production (pg. 199)
14 Turning Around Distribution (pg. 217)
15 Sustaining the Turnaround (pg. 227)
Appendix A: Industry ROA Trees (pg. 259)
Appendix B: Resources (pg. 291)
Appendix C: Glossary (pg. 297)
Notes (pg. 301)
Index (pg. 305)
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