Corp.Finance with Chandel.

WHAT EXACTLY IS CORPORATE FINANCE ALL ABOUT ?

For me the corporate finance is more then the equations , models , numbers blah blah blah..

Different people have different notions regarding corporate finance , some of them think it’s extended business for an accountant , some think it’s all about financial modeling , etc.

But , the relevant definition for corporate finance is every decision that a business makes has financial implications and any decision which affects the finances of a business is corporate finance decision and imbibes the realm of corporate finance.

Now I believe in notion that gives us a sense of a rationale which is that there is a corporate life cycle which governs the proper functioning and enables the companies to take consolidate decisions for their upcoming consensus.

Now the question is what and how is a corporate life cycle?

Answer to this question is very simple when it is compared to the very life cycle of human beings. Believe me , that’s true.

Every company just like human being is born , grows , matures and just like every human being it declines. As we know that humans don’t like to age , companies also don’t like to get old. Young companies are trying to act old , the older companies are trying to act young again and this goes on and on. The focus of company needs to change when it moves through the life cycle from startups to growths to maturing to the decline procedure. Every single company has to follow this life cycle and to fight this is the most dangerous thing a business can do.

More and more value is being destroyed around the world by companies not acting there age and there’s a entire ecosystem which feeds them like consultants , bankers since i call them the plastic surgeons of the corporate world , it’s like saying that , Hey I’ll give you a face lift you’ll be young again and companies keep on buying into this notion over and over again.

So , now I hope this would help the readers to get and idea so as to understand the basics or some interesting facts pertaining to corporate finance.