Developments Healtcare institutions
The Dutch healthcare sector is in flux. The newspapers report on new developments almost on a daily basis.
In the previous issue of Zanders Magazine we argued that the credit crisis came at the wrong time for this sector: precisely at the moment when the risks are increasing, the banks reduce their lending.
More than a necessary evil
Because of regulations such as Basel II and Solvency II, risk management is high on the agenda of all financial institutions and many companies. Since the credit crisis began, everyone knows exactly why. The crisis will be with us for a while yet, and the regulatory burden will only intensify over the coming period. All the more reason to support this crucial process with an intelligent risk management system (RMS).
Down to business, northern style
As an IT service provider operating across the Netherlands, SG|automatisering (SG) has been working for nearly 30 years for property managers, local authorities and healthcare institutions.
The paths of Zanders and SG cross regularly. They are a well-matched couple. “Like Zanders, we prefer to let our results speak for themselves,” explains Alexander Zaal, a manager at SG.
Increasing Shareholder Value by Utilizing Tax Opportunities
The WACC is a calculation of the ‘after-tax’ cost of capital where the tax treatment for each capital component is different. In most countries, the cost of debt is tax deductible while the cost of equity isn’t, for hybrids this depends on each case.
Some countries offer beneficial tax opportunities that can result in an increase of operational cash flows or a reduction of the WACC.
This article elaborates on the impact of tax regulation on the WACC and argues that the calculation of the WACC for Belgian financing structures needs to be revised. Furthermore, this article outlines practical strategies for utilizing tax opportunities that can create shareholder value.
Keep Track of Your Company’s Valuation Gap!
The seventh article in this series on the WACC discusses how the company’s valuation gap might be used as a potential source of shareholder value creation. It explains why current market prices, as observed on stock markets, might temporarily deviate from the intrinsic value of the company and what the implications are for strategic decisions, such as share buybacks, equity issues, dividends, mergers and acquisitions, and in/divestures.