Elements of Value Based Management:

Components and structure of Value Based Management ( VBM )


Value Based Management is the management approach that ensures corporations are run consistently on value (normally; maximizing shareholder value)


Talkers- Partial adopters True value transformers

Management capabilities, data quality

External factors change

Internal cooperation

In M&A

Value of combined companies – (Stand alone value of acquirer + Stand alone value of Target) = Strategic Value In managing the business


External value assessment of acquisition target

Internal tool of managing value (VBM)

It is useful to understand that VBM includes all three of the following:

  1. Creating Value (ways to actually increase or generate maximum future value ~ Strategy)
  2. Managing for Value (governance, change management, organizational culture, communication, leadership)
  3. Measuring Value (valuation)

Source of Value Based Management:

J. H. M. de Jonge Management & Advisers