In company’s announcement,Management/Board will usually use the share-buyback strategy to inform its shareholder that it is a means of maximizing shareholder value. So let’s look at some basics of Share buyback to understand the rationale of such announcement: What is Share buyback: Basically, it is the purchase by a listed company of its own shares. [...]
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Venture capital is one venue where shareholder value can be minimized as the risk will then be shared with other parties. Let’s understand some basics of venture capital: (a) What really is venture capital? Venture capital is a form of “ risk capital” where the capital is invested in a project/business with substantial element of [...]
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There is the increasing trend of listed companies going towards privatisation exercises. Hence, it is important that we are aware of the reason for majority shareholders or founder shareholders of public listed companies to go private. Listed below are some of the reasons : their company‘s share prices have been grossly under-valued by the public/share [...]
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IPO/Listing is often the commonest key to unlock and maximised shareholder value. Append below are some of the following obvious advantages of taking a private company into a public listed status: Enhances profile and standing of the company; Access to capital market; Flexibility in sourcing funds; Ability to get cheaper funding due to public listed [...]
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There are no right or wrong in pursuing inorganic growth vide M&A, as Managment/Board of those companies that are in the sunset industries are coerced by shareholder to look further. Besides the above, the following are some of KEY REASONS for executing M&A: Globalisation of business: Increased cross-border investments require companies in this region to [...]
Very often, the Board of companies who have accumulated losses will issue right issues to its shareholders and start announcing/convincing them about the company’s future transformation they want to be So let’s lookat at some of these strategies that can form the blueprint/excuses for transformation are:- immediate divestment of non-strategic businesses,
Earlier article there is the mention of hiving off as a mean to maximize/increase shareholder value. There is another corporate re-structuring/manuveure which is the opposite which is Hiving-down when a failed/restructured company want to create shareholder value. So let’s look at what is Hiving-down? It is the transfer of a business from an insolvent company [...]
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Besides inorganic growth vide Mergers & Acquisition,privatization,share-buyback and other strategies, one can also deploy a breakup strategy to enhance shareholder value. Incidentally, this break-up strategy is an attempt to make known to the market that your company’s worth is more than what has been assigned by the analyst. This is called “value transparency”. The belief [...]
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One reverse way of looking at shareholder value is to see how companies failed in their business. Interestingly, those failed business relate to big entities which have many different businesses units and/ core businesses. So why did these companies failed and what are the ways that shareholder value are eroded/destroyed. Tabulated below perhaps are some [...]
To focus or to diversify has always been a debatable subject amongst Management. It has been noted that some public listed companies who are in the sun-set business or pressures from investors to generate more sterling results could have coerced managers to look at diversification. Whether diversification is a right direction or not, Management needs [...]
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