INSIGHTS
The Systemic Dilemma for Small-Cap Service Providers
A recent piece in The Wall Street Journal alluded to a fascinating insight: “Companies appear to avoid hiring auditors that have a history of critical audits at other...
CEO Corner with Karen Zaderej, Chairman, CEO, and President of Axogen Corporation
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...
CEO Corner with Garry Ridge, CEO of WD-40 Company
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...
SCI Insights: Candid, Off the Record Q&A with an Institutional Investor & Board Member
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...
CEO Corner with Billy Prim, Founder of Blue Rhino and Primo Water
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....
An M&A Process That Creates Value: What Every CEO Should Know (Part 1 of 3 – Planning and Strategy)
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.
Reg A+ Mini IPOs and Institutional Investors – A Reality Check
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
unsaid.
What Most Small-Cap Leaders Get Wrong About Trading Volume
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).
Most Board Members Underestimate Two Key Risks
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.
Why the Investor Meeting You Just Had…Didn’t Go As Well As You Think (Part 1 of 2)
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.
Why the Investor Meeting You Just Had…Didn’t Go As Well As You Think (Part 2 of 2)
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?
5 Financing Mistakes Small-Caps Make, and the Industries That Hope It Continues
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.
SUBSCRIBER CONTENT
Why Small-Caps Are Often A Better Target For Cyber Criminals
The overwhelming percentage of media coverage regarding cyber crime is on large-cap companies. While understandable, media focus distorts a reality that small-cap officers and directors are learning the hard way: small companies are often much more attractive targets to hackers than larger companies.
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.
An Investor’s Warning Regarding “Do-It-All” Advisors
“CEOs too often fall victims to advisors who promise to deliver fast, impactful change.”
Investor Perspectives On Small-Cap Website Failures
Investors are constantly surprised by the disconnect between what they expect to find[1] 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...
SEC Regulation FD: “Fair” Disclosure, Not “Fear” Disclosure
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.
Don’t Have In-House Counsel? It’s a Serious Added Risk for Investors
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.
Value Destructive Nonfinancial Press Releases
Small-cap CEOs regularly get poor advice regarding the issuance of nonfinancial press releases. The errant recommendations typically come from novice investor relations professionals, inexperienced investors, or investors who are short-term focused.
Investment Conferences – Choosing the Right Event For Your Company
Investment conferences can represent an excellent way to expand your investor audience; or wasted time, energy, and capital if you do not choose with care.
The Underappreciated Nexus Between Speaking Skills and Share Price
Being a well-spoken CEO doesn’t guarantee that investors are going to buy your stock. Companies operated by CEOs who are ineffective speakers will usually underperform their peers.