# value creation

## About

Stern Value Management (SVM) is a global management consulting firm and the world’s leading advisor on value management, value strategy and value creation. Our goal is to sustainably maximize the value of enterprises by improving corporate governance, optimizing capital structure, and reducing cost of capital.

- Customers: 000
- Verified: Yes

## Services

### Management Consulting
- [Value Management Consulting](https://bilarna.com/ai/management-consulting/value-management-consulting)

## Pricing

- Model: custom

## Frequently Asked Questions

**Q: What is value management consulting?**
A: Value management consulting is a strategic advisory service focused on helping companies maximize their long-term enterprise value by aligning corporate governance, capital allocation, and strategic decision-making with shareholder value creation. It involves implementing frameworks like Value-Based Management (VBM) to measure performance beyond traditional accounting metrics, such as through the Economic Value Added (EVA) metric. Consultants work to optimize capital structures to reduce the cost of capital, design variable compensation plans that incentivize value-focused behaviors, and improve governance systems. This discipline is applicable across business types, from large public corporations to private equity portfolios and family-owned businesses, providing tailored strategies to enhance sustainable profitability and competitive advantage.

**Q: What is Economic Value Added (EVA)?**
A: Economic Value Added (EVA) is a financial performance metric that measures a company's true economic profit by calculating the value created above the required return of its investors. Specifically, EVA is net operating profit after taxes (NOPAT) minus a charge for the cost of all capital employed. It was developed in 1983 as a core component of Value-Based Management systems to provide a more accurate picture of value creation than traditional accounting profits like net income. EVA incentivizes managers to focus on long-term projects that exceed the cost of capital and discourages value-destructive investments. It is widely adopted by leading management teams globally to align operational decisions with shareholder wealth, serving as a foundational tool for performance measurement, compensation planning, and strategic capital allocation.

**Q: How do value management consultants help different types of businesses?**
A: Value management consultants tailor their strategic frameworks to address the specific governance, flexibility, and value-creation challenges faced by different business structures. For large public Fortune 500 firms, consultants implement rigorous Value-Based Management systems to maximize long-term shareholder value within complex corporate processes, focusing on capital allocation and cost of capital optimization. For private equity and investment funds, they design incentive structures, like value-focused variable compensation, to align portfolio company management with Limited Partner interests while preserving operational autonomy. For mid-cap Russell 2000 companies, advisors deploy scalable management systems that enhance shareholder value without sacrificing strategic agility. For family-owned businesses, consultants build best-in-class internal governance models that professionalize operations while protecting the founding entrepreneurial culture, ensuring sustainable value growth across generations.

## Links

- Profile: https://bilarna.com/provider/sternvaluemanagement
- Structured data: https://bilarna.com/provider/sternvaluemanagement/agent.json
- API schema: https://bilarna.com/provider/sternvaluemanagement/openapi.yaml