Using Debt to Fuel Value Creation

Posted By: Chris Angelatos

The key measure of financial success for a business owner is value creation. Shareholder value is created when the return on invested capital in the business exceeds that business’ cost of capital. We find that owners of mid-sized businesses often have ample high-return investment opportunities that are not pursued because they perceive capital to be scarce. Shareholder value creation often suffers as a result. Read on for our views on why debt is the indispensable value creation tool.

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