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Small-Cap Institute's Amanda Gerut interviews Axogen Corporation's Karen Zaderej. Ms. Zaderej is chairman, CEO, and president of Axogen Corporation (NASDAQ:AXGN). Axogen (AXGN) is the leading company focused specifically on the science, development and...read more
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 and...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.
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.
Small-cap companies undertake a variety of measures – often under pressure from shorter-term investors or misinformed service providers – aimed at increasing share price sooner versus later. One of them is stock buy-backs. But more often than not, officers and...read more
Considering that greater than 80 percent of shareholder activist campaigns each year are waged against small-cap companies, it is critical for small-caps to communicate clearly about the issues investors care most about. Notwithstanding the fact that annual proxy...read more
by James Carbonara What is an NDR (non-deal roadshow)A non-deal roadshow, or NDR, is a series of investor meetings not associated with an active deal or active financings. That said, if you raise money in the future, investors you meet with on an NDR are potentially...read more
Small-cap companies choose investment bankers for many reasons: “they showed a lot of interest in us.” “they really seem to ‘get’ what we do.” “they’ve done our last 4 financings.” “a banker who we’ve worked with in the past, just joined this bank.” “they always...read more
Small-cap companies raise $25-$40 billion every year in the equity capital markets, and every special situation fund manager that provides this growth capital would confide in private that most of the financings are needlessly dilutive. The systemic problem is that...read more
One of the least understood aspects of shepherding a small-cap company is garnering and maintaining sell-side equity research coverage. The goal of this piece is to clear up commonly-held misconceptions. Attracting coverage Economics. One of the main reasons why...read more
As Small-Cap Institute, Inc. has discussed, there is widespread confusion among small-cap leaders on the subject of trading volume; i.e., where it actually comes from, where it doesn’t come from, and how to get more of it. One of the most insidious byproducts of this...read more
How Sell-Side Research Analysts Make Money: An Insider’s Primer for Small-Cap Officers and Directors
By Shawn Severson Small-cap officers and directors often understandably lack a thorough understanding of the “business” of sell-side equity research. Without an accurate rendering of the drivers and economics of the research business, it’s hard to have realistic...read more
By Adam J. EpsteinSmall-caps often contain directors who are new to the small-cap world, having spent their careers operating, governing, or advising large-cap companies. These board members, and their colleagues, are often surprised – and not in a good way – to learn...read more
By Priya Cherian HuskinsD&O insurance, the insurance that is designed to respond when directors and officers are sued by plaintiffs or regulators like the Securities and Exchange Commission, is important for small cap companies. D&O insurance’s ability to do...read more