Larry Polhill Sheds Light on Corporate Finance


Corporate finance is one of the core areas of finance. It basically deals with the various sources of funding, the distinct capital structure of various corporations, as well as the actions that have to be taken by managers in order to augment the valuation of a company to the stakeholders. The tools and analysis used for the purposes of allocating financial resources by a company also comes under the domain of corporate finance. As per Larry Polhill, a renowned industry professional, the key goal of corporate finance ideally is to increase or maximize the shareholder value. Even through the principals involved in this domain is a bit different from the ones of managerial finance; its essentials tend to applicable for the financial problems of almost kinds of companies.

Larry Polhill   talks about the importance and scope of corporate finance

People can ideally describe corporate finance as the management of various financial activities that tend to be involved in running a corporation in a smooth fashion. This domain ideally involves managing the necessary finances and its sources relating to a company. Larry Polhill mentions that corporate finance involves the understanding of various financial problems that might be faced by an organization, as well as working towards the prevention of such an eventuality. Mr.  Polhill   is known to have quite an extensive background in the domain of Corporate Finance, as well as Mergers and Acquisitions. He essentially served as the Chairman of the Board, Chief Executive Officer and even as the President, at American Pacific Financial Corp. or APFC. He worked in this organization for more than twenty-five years, and in this duration he was involved in the businesses of a the firm as an officer, Director or financier.

The extensive industry experience of Larry Polhill has provided him with quite a wide ranging knowledge when it comes to corporate finance. He essentially mentions various aspects that make corporate finance extremely important for any business.  Here are some of them:

  • Research and development: Corporate finance tends to extremely important for the purpose of research and development in an organization. In the modern world, it is increasingly important for a company to constantly evolve and change, and that is not possible without continuous research and development.
  • Motivating employees: To motivate the employees working at a firm and to encourage them to improve their performance, the managers often have to provide them with some incentives. These incentives can include bonus and higher salaries, as well as items like transport and canteen facilities. All of these elements require quite a bit of finance.
  • Smooth operation of business: Adequate working capital is needed by every business in order to run in a smooth fashion. Expenses involved in advertising, sales promotion, distribution and such activities tend to form a major part of corporate finance.
  • Expansion and diversification: Expansion ideally implies increasing the size of a company, while diversification implies on the production and selling of new and innovative products. Companies essentially require modern machines and technologies for this task. Therefore, finance becomes quite an integral part of it.

According to Larry Polhill, without proper corporate financing steps, no business can function in a smooth fashion.

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