Strategic Capital Allocation
Tailored approaches to driving greater returns
Capital allocation is one of senior management's most important responsibilities and a difficult discipline to master. We provide leading capital planning solutions to help you make faster and better decisions delivering increased returns on investment.
Are you making the right decisions on where to invest capital?
As a business leader, you face challenging choices in how to allocate your capital and resources. Decision making can be greatly improved by enhancing the governance, processes, data and tools in place to assess and monitor capital deployment alternatives.
Our solution to capital planning helps decision makers confidently address typical allocation choices:
- What investments will drive the biggest ‘bang-for-the-buck’?
- Who should we acquire to grow our business?
- Will we achieve our objectives based on our existing investments?
- Which projects should we start or stop funding?
- Is my R&D, IT and CapEx spend at an appropriate level and is it consistently delivering on our objectives?
- Should we maintain or increase dividends?
- How much cash should we keep?
- How should we fund our capital allocation plan?
Download part one of our series on Strategic Capital Allocation 'Swiss Corporates through a capital allocation lens' to find out more.
How Deloitte can help
Our solution combines our suite of decision support tools and analysis methods to enable your organization to:
- Align your capital plan to your strategy
- Quantify the benefits through financial analysis (e.g., multi-criteria valuation methods)
- Incorporate risk and project interdependencies in the evaluation criteria
- Develop more insightful forecasts to help respond to uncertainty
- Identify projects that generate desired returns
- Manage the biases and narrow framing that project teams often exhibit in their business cases
- Perform ‘what-if’ analyses and run a series of scenarios through interactive dashboards
- Determine the capital structure needed for executing the strategy
- Decide whether to grow the business organically or through M&A
- Capturing ‘portfolio effects’ such as project interdependencies, alternative funding levels, multi-year funding and planning horizons