Chapter 1
FINANCIAL ANALYSIS : What is corporate finance?

The financial manager has three main roles:

In his first role, the financial manager transforms the company's real assets into financial assets. He must maximise the value of these financial assets while selling them to the various categories of investors.

His second role is a thankless one. He must be a “party-pooper”, a “Mr No” who examines every proposed investment project under the microscope of expected returns and advises on whether to reject those that fall below the cost of funds available to the company. But it is also the job of a strategist who may go as far as to challenge the current perimeter of the company's activities.

In his last role, the financial manager guarantees that the operational performance of the company is not spoiled by financial events.