CMA Final Strategic Performance Management and Business Valuation Classes

CMA Final Paper 20 — Strategic Performance Management and Business Valuation

Strategic Performance Management and Business Valuation is the capstone management accounting paper of the CMA Final — integrating performance management, strategic measurement, and business valuation into one comprehensive subject. This 100-mark paper prepares CMAs for their highest-value professional roles: CFO, Strategy Controller, and Management Consultant.

Strategic Performance Management

• Balanced Scorecard (Advanced) — Strategy maps, cascading BSC from corporate to divisional and individual KPIs, BSC implementation challenges, dynamic BSC revision, cause-and-effect linkages between perspectives
• Performance Measurement Frameworks
  • Performance Prism — Stakeholder satisfaction, stakeholder contribution, strategies, processes, capabilities
  • Fitzgerald and Moon's Building Blocks Model — Dimensions (results and determinants), standards, rewards
  • Dashboard and Scorecard design — KPI selection criteria (SMART), leading vs lagging indicators
• Divisional Performance (Advanced) — Transfer pricing in performance evaluation context, EVA vs RI vs ROI incentive effects, residual income with inflation adjustment, ROCE vs EBITDA margin debates
• ESG Performance Management — Environmental, Social, and Governance metrics integration into performance management systems, GRI Standards, TCFD (Task Force on Climate-related Financial Disclosures), BRSR metrics for listed companies
• Not-for-Profit Performance — Value for money (economy, efficiency, effectiveness), public sector performance measurement, social return on investment (SROI)

Business Valuation

• Asset-based Valuation — Net Asset Value (book value, adjusted book value, liquidation value, replacement cost)
• Income-based Valuation (DCF) — Free Cash Flow to Firm (FCFF) model, Free Cash Flow to Equity (FCFE) model, terminal value (Gordon growth model, exit multiple), WACC as discount rate, sensitivity analysis on key assumptions
• Relative Valuation — EV/EBITDA, P/E, P/BV, P/S multiples — selection of comparable companies, applying and adjusting multiples
• Dividend Discount Model — Gordon's constant growth, multi-stage DDM for companies with changing growth rates
• SEBI Registered Valuer Framework — IBBI Valuation Standards (IVS 101–105), SEBI-registered valuer requirements for M&A fairness opinions, insolvency valuation, ESOP valuation
• Startup Valuation — Pre-money and post-money valuation, VC method (target return-based), scorecard method, Berkus method
• Real Options in Valuation — Option to expand, option to defer, option to abandon — using option pricing theory to value business flexibility