Economic advice
Talanton’s advisors are also involved in issues around corporate management and control and investment analysis. Companies can only remain in operation if economic value is added. In this process investment decisions are of crucial importance. In order to make such decisions, insight in the cost of capital is of essential importance. Next to that the expected flow of funds must be brought into vision. In doing so, thorough knowledge of the market process in question is a primary requirement.
Once the decision has been made, the question of reporting comes up. It is not advisable to report within another scope or framework than that within which the decision has been made. In everyday practice it, however, often occurs that investment decisions are made on the basis of the net present value, whereas the consequences of this are mentioned on a profit basis in the financial report. This may cause an entirely distorted picture of the situation. If the adding of economic value is stated as a central corporate objective, investment decisions and control model should be expressed along the same lines.

