Many people in
the world of business and finance have come across the term ‘activist
investing’. It refers to an activity where a group of shareholders come
together to buy the entire stock of the company. They resort to this course of
action when they feel the organization is not performing well in the
market. Their objective is to alter the
composition of the Board of Directors. In many cases, they invite new members
from amongst themselves to occupy the important positions. Only then can they
implement the necessary changes which they assume will improve its reputation
in the environment.
Jon Mckee Queen Amatex Capital – Does activist
investing have any potential benefits
Jon McKee
Queen is a creditable financial expert who presently working in Ukraine. This
MBA graduate from Kyiv School of Economics has years of valuable experience
specializing in diverse fields. These include corporate finance, risk
quantification, legal matters, commodity trading and investment banking. He has
the distinction of holding the positions of ‘Managing Director’ and ‘Head of
International Sales’ in two prominent investment banks in the country.
Currently, he is expert manager at Amatex Capital, a private equity
establishment with a good reputation in the market. He heads a team of
professionals who are responsible for developing and running large projects in
diverse areas. These include energy exploration, investment banking and mining.
The Jon Mckee Queen Amatex Capital team of
experts say the top management of prominent companies in America are usually
apprehensive of activist investing. They feel that it disrupts the normal
functioning of their organizations. In their opinion, shareholders who indulge
in this activity do more harm to their establishments than good. However, these
financial professionals clarify that this is a misconception of their part.
They go on to point out the following 3 key advantages of activist investing:
- Influence the top management of a company
Generally, small investors individually do not have much influence on
the people responsible for running a company. This is because they usually hold
an insignificant number of shares in the organization. However, when they come
together to combine their resources, they become more powerful. They have a
greater say in the functioning of the establishment and can even change the
Board of Directors.
- Bring in new members and ideas
Activist shareholders generally bring in new members to the Board of
Directors of their companies. Such people usually have the necessary knowledge,
skills and experience to run the organization in a more effective manner.
Research shows they ideas they introduce revolutionizes the functioning of such
establishments. They generally come up with groundbreaking products or
services. This boosts their reputation in the marketplace. The projects Amatex
Capital develops and operates is an example of this trend.
- Boost share prices
Shareholders who indulge in activist investing can turn their
companies around in ways many people cannot imagine. This encourages other
individuals to put their money into such organizations. They do so in the hope
of earning a reasonable return on their investment. This trend can boost the
share prices of such corporate enterprises.
The Jon Mckee Queen Amatex Capital group of
financial professionals say activist investing
can help companies improve their image in the market. This is because their top
management undergo a radically change for the better. The above 3 key
advantages prove this point without any reasonable doubt.
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