Chapter 23: Corporate Life Cycle and Growth Strategies

In this section

• Identifying Breakpoints in Corporate Growth
  Explore the transition points along the corporate life cycle, from startup and expansion to maturity and beyond, using key metrics, ratio analyses, and S-curve modeling to identify inflection points that shape strategic finance decisions.
• Harvesting Strategies (IPO, Sale, MBO)
  Explore key considerations, processes, and real-world examples for harvesting strategies including IPOs, private sales, and management buyouts to maximize shareholder value.
• Approaches to Emerging vs. Mature Markets
  Learn strategic considerations for expanding into emerging versus mature markets, including entry strategies, risk management, valuation practices, and common pitfalls—essential insight for CFA Level II candidates preparing for multi-market corporate finance decisions.
• Sustaining Competitive Advantages
  Explore key strategies for preserving a firm’s market leadership by leveraging unique resources, managing innovation, and adapting to evolving competitive landscapes.
• Vignette: Growth Stage Transitions
  Explore how to interpret corporate life cycle clues, identify strategic gaps, and align growth recommendations with a firm’s financial and market realities in CFA Level II Corporate Issuers.
• Tools and Frameworks for Growth Strategy Analysis (Added Topic)
  Explore core strategic analysis tools and valuation methods critical for corporate growth decisions, including Ansoff’s Matrix, BCG Matrix, SWOT, Porter’s Five Forces, and real options valuation.
• Defensive Growth Strategies for Market Downturns (Added Topic)
  Learn how to identify early warning signals and deploy cost optimization, resource preservation, and counter-cyclical moves to fortify corporate growth during challenging economic times.