Usually, a company distributes a portion of its cash as dividends to its owners. Some profit is left in the company, and the corporate management can use these funds for projects that increase owner value.
We offer your company competitive and highly customised solutions for increasing the owner value of equity and liabilities. During the planning phase, we map your needs and our experts seek to find the best solutions for your company.
The most common means for increasing owner value
Listings and subscription issues are efficient means of collecting capital. Listing makes the shares liquid, increases the visibility of your company and accumulates capital for e.g. investments. A successful listing per se can increase the value of your company. Listed companies can use a subscription issue to finance investments or improve the balance sheet.
Business growth and investments are some of the most common means of increasing owner value. By investing in new and more efficient production capacity, your company's business operations grow, increasing sales revenue. This in turn also improves the earnings of your company and thus its ability to pay dividends.
Company acquisitions or changes in corporate structure can have a significant effect on owner value. By investing in a new company, your company can quickly expand into new geographical areas or lines of business. Skilfully executed company acquisitions increase sales and profitability, improving your company's ability to pay dividends.
Buy-back of own shares reduces the total number of shares, thereby distributing the earnings and dividends to a smaller number of shares. This results in increased earnings per share.
Repayment of liabilities reduces the indebtedness of your company, which may increase the company value in the long term. Accumulated earnings enable your company to pay back the debt, which decreases financing costs and increases the profitability of your company. The increased profitability leads to a better ability to pay dividends in the long term.