Executive summary

Capital allocation is the disciplined deployment of a firm's cash across reinvestment, M and A, debt paydown, dividends, and buybacks to maximise long-run value per share. This is the Capital Allocation Framework from the Stratenity Library, a governed strategic execution asset that is already built for you. It gives your team the full working method for capital allocation, and it walks through everything from sizing the capital pool: operating cash, balance-sheet capacity, and constraints to m and a discipline: when an acquisition beats a buyback. Every asset ships with a worked client example, a clear RACI, defined KPIs, and governance you can defend, so your team adapts it to a live client engagement instead of starting from a blank page.

What is inside

What this framework covers

This is a preview of the full deliverable. Inside the Stratenity Library, this framework walks your team through the complete method, section by section, with a worked client example threaded throughout.

  • Why Capital Allocation Is the CEO's Highest-Leverage Decision
  • The Full Menu of Uses: Reinvestment, M and A, Debt, Dividends, Buybacks
  • Sizing the Capital Pool: Operating Cash, Balance-Sheet Capacity, and Constraints
  • Setting a Defensible Hurdle Rate: Cost of Capital and Unit Risk Premia
  • Ranking Uses by Risk-Adjusted Return
  • Organic Reinvestment: Maintenance Capex, Growth Capex, and the Returns Test

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