The finance industry is regarded as the engine of the economy. Organisational functioning is affected by how efficiently the finance department operates. Tasked with keeping track of company finances, corporate finance professionals need strong strategic abilities.
Corporate finance is an area of finance dealing with sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders.
It includes two key functions:
Accounting and finance
The primary goal of the corporate finance department in an organisation is to maximise or increase shareholder value.
Often associated with investment banking, a corporate finance department is involved in capital investment decisions.
Making capital investments
The corporate finance department is responsible for ensuring that the business invests in the right type of capital.
Sourcing capital in the form of debt or equity
The corporate finance department must find innovative ways of sourcing capital.
Short-term financial management
Skilled corporate finance professionals must be able to manage finance as efficiently as possible.
Corporate finance professionals are essentially responsible for managing a business’ money-forecasting where it will come from, knowing where it is and helping its managers decide how to spend it in ways that will ensure the greatest return.
As a corporate finance professional you are responsible for looking for ways to free up capital and increase profitability and decrease expenses.
What qualities do you need to succeed at finance d’entreprise?
- Strong analytical and quantitative skills
- Strong attention to detail
- Understand market conditions, economic forecasts and trends
- String leadership skills
- Great problem-solving abilities
- Excellent communication skills
- One of the most important requirements for working in various finance jobs is that you need to have a good handle on numbers
Making the most of finance d’entreprise involves finding the most cost-effective ways of making more money for the company.