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What Every Small-Cap CEO Needs to Know about Shareholder Activism (Part 1 of 4: Who Are They, and Why Are They Here?)
by Beatriz Infante Part 1 of this primer covers why small-cap companies can frequently be magnets for activist challenges. Part 2 discusses the different kinds of activist investors in greater detail, and what motivates them. Part 3 discusses concrete steps CEOs...read more
Small-Cap Institute's Amanda Gerut interviews WD-40 CEO, Garry Ridge. Mr. Ridge is president and chief executive officer of the WD-40 Company (NASDAQ:WDFC). WD-40 Company is the maker of the ever-popular WD-40, as well as 3-IN-ONE Oil, Solvol and Lava heavy duty hand...read more
Public company boards, whether they are listed or not, are supposed to be selected predominantly by independent board members that make up the nominating/governance committee of a board. Sadly, in most small-cap companies, it’s the CEO who personally selects board members. Since board members are supposed to oversee the manner in which the CEO and others operate the company, it’s a glaring problem, as friends don’t typically do a great job objectively overseeing their friends.
SCI Book Highlights: The Imperfect Board Member – Discovering the Seven Disciplines of Governance Excellence
SCI Book Highlights The Imperfect Board Member Discovering the Seven Disciplines of Governance ExcellenceDescription [excerpted from the book]: Meet David Slater. He is an ambitious and overcommitted executive who is struggling to lead his business through its first...read more
Small-Cap Institute's Amanda Gerut interviews renowned small-cap CEO, Billy Prim. Mr. Prim founded Blue Rhino, which was ultimately acquired for $340m. Subsequently, Mr. Prim founded Primo Water (Nasdaq: PRMW), where he now chairs the board. Mr. Prim provides...read more
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.
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.
“CEOs too often fall victims to advisors who promise to deliver fast, impactful change.”
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.