Daily BriefsESG

Daily Brief ESG: Companies that Don’t Have Growth Plans but Are Competitive in a Specific Market Are Targeted for MBO and more

In today’s briefing:

  • Companies that Don’t Have Growth Plans but Are Competitive in a Specific Market Are Targeted for MBO


Companies that Don’t Have Growth Plans but Are Competitive in a Specific Market Are Targeted for MBO

By Aki Matsumoto

  • In order to carefully select IPOs and increase MBO/TOB, management’s mindset should be shifted to expanding shareholder interests and IPOs that are not for tax-saving purposes.
  • Many companies still have top management even though the founding family’s holdings have already declined. Such companies have relatively low ROE, ROA, and Tobin’s Q.
  • For MBO candidates, the key is to think on the side of institutional investors who propose MBOs through engagement with decision makers and PE funds who provide capital and business plans.

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