e-book
Corporate Finance: Theory And Practice
We are very pleased with the success of the first edition of the book. It has encouraged
us to retain the approach in order to explain corporate finance to students and professionals.
There are four key features that distinguish this book from the many other corporate
finance text books available on the market today:
• Our strong belief that financial analysis is part of corporate finance. Pierre
Vernimmen, who was mentor and partner to some of us in the practice of corporate
finance, understood very early on that a good financial manager must first be able
to analyse a company’s economic, financial and strategic situation, and then value
it, while at the same time mastering the conceptual underpinnings of all financial
decisions.
• Corporate Finance is neither a theoretical textbook nor a practical workbook. It is
a book in which theory and practice are constantly set off against each other, in the
same way as in our daily practice as investment bankers at BNP Paribas, DGPA
and Mediobanca, as board members of several listed and unlisted companies, and as
teachers at the Bocconi and HEC Paris business schools.
• Emphasis is placed on concepts, intended to give you an understanding of situations,
rather than on techniques, which tend to shift and change over time. We confess to
believing that the former will still be valid in 20 years’ time, whereas the latter will
for the most part be long forgotten!
• Financial concepts are international, but they are much easier to grasp when they are
set in a familiar context.We have tried to give examples and statistics from all around
the world to illustrate the concepts.
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