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Organic growth can be slow and hard to come by. In sectors that are periodically most affected by political uncertainty, trade disputes, and other geopolitical changes, customers can end up deferring their buying decisions, which makes new revenue elusive. In other instances, revenue expansion requires substantial investment in R&D that may not pay off for years. Sometimes, growth is constrained by the inability to attract needed talent or the absence of important intellectual property. With growth an imperative, some small-cap CEOs turn to mergers and acquisitions (M&A) as a solution.
There have been a number of “mini- IPOs” utilizing Regulation A+ in the
last couple of years. One clear pattern has emerged thus far: institutional investors
have taken little to no part in these IPOs for several reasons that have gone largely
Few things matter more to thousands of small-cap companies than trading volume. And yet, few aspects are more misunderstood. This article discusses five critical concepts about trading volume that small-cap officers and directors routinely misunderstand, hurting shareholders in the process (including, financings, M&A, where trading volume comes from, and where it doesn’t come from).
Seated and prospective board members commonly focus on one key risk of being a public company board member that isn’t statistically significant, and ignore two of the biggest risks they actually face.
Thousands of small-cap investor meetings happen annually. CEOs, bankers, and IR professionals often think the meetings went great, whereas investors routinely think the opposite. What accounts for such a costly, dramatic disconnect? An unvarnished buy-side perspective.
Part 1 discussed how institutional investors react to common management missteps during investor meetings. Part 2 discusses a host of other common issues that turn off investors. How many are your company making?
A former special situation hedge fund manager addresses how investors that provide billions of dollars of growth capital to small-caps benefit from serial mistakes these companies make, without even realizing it.
As is evidenced by the numerous different formats for earnings press releases, there is no “correct” way to communicate quarterly financial results. But experienced investors are constantly frustrated by many small-cap companies’ lack of awareness of investor...read more
Here’s a “cheat sheet” for a CEOs with respect to money-losing precedents seasoned small-cap investors know too well.
An M&A Process That Creates Value: What Every CEO Should Know (Part 2 of 3 – Due Diligence on the Target)
Part 2 describes how small-cap CEOs can better understand the business culture of an acquisition target and the potential for friction between workforce cultures, attitudes, and compensation schemes.
An M&A Process That Creates Value: What Every CEO Should Know (Part 3 of 3 – Due Diligence on the Target)
Part 1 of this series focused on the most important aspects of planning and strategy in a mergers and acquisitions (M&A) process. Part 2 detailed the necessary components of due diligence on a target company. Part 3 will describe how to manage present and emerging risks that can crop up in any M&A transaction.
Investors are constantly surprised by the disconnect between what they expect to find on corporate websites, and what they actually find. This disconnect can erode a tangible amount of shareholder respect. Some key things that small-cap officers and directors may...read more
A special thanks to iconic boardroom lawyer, Bob Lamm, for his invaluable advice and contributions to this piece.There was a time in the not too distant past when board members and investors rarely interacted outside of annual shareholder meetings – if at all. Today,...read more
If all you did was read The Wall Street Journal or watch CNBC, you’d think these are the only audit firms in the country.
But that is not the case at all.
SEC Regulation FD has been with us for 18 years, and even when new it did not introduce any radical new concepts. However, it remains one of the most misunderstood SEC rules.
Many investors are just plain nervous about putting money in small-caps that operate without in-house counsel. They’re often right to feel that way.
Most small-cap investor relations professionals have never been institutional investors. Accordingly, they are not always as apprised as CEOs and CFOs would prefer regarding common earnings call practices, including those to be avoided at all costs.