shareholder return SHAREHOLDER RETURN

Shareholder Return has a number of definitions, but we outline it as: the extent of actions taken by those in management positions, that in turn enrich the company’s shareholders. Shareholder’s money, in theory, should be utilised by senior decision makers to earn a better return on investment for the shareholder, than what they could earn investing elsewhere, with the same level of risk.

One of the best practices to follow as a business owner is to build up your business as if you are preparing it for sale. This allows you as someone in a senior position, to remove yourself from your own internal view of the company, and instead weigh up the strengths and weaknesses of your business as if you were looking to sell it. Through this method, growth issues can be flagged and addressed. When “preparing to exit”, you will often be able to shine a spotlight on the areas that require improvement. It is important to always look to be refining your practices, as this will ultimately attract investors, allow employee buy-ins, and in the long run allow you to have more free time.

 

AREAS COVERED

  • Three key metrics to measure performance; revenue growth, economic profit and free cash flow.
  • Building strong relationships
  • Managing Risk.
  • Tracking and improving ROI to ensure value creation.
  • Managing debt and Improving cash flow.
  • Reviewing assets that maximise value.
  • Tips to ensure precise execution of your strategy.
  • Merger and acquisition integration.

DELIVERABLES

 

      • Building out simple clear relevant (to your business and sector) performance metrics that have a line of sight to all levels of the company.
      • How to build strong conections at all levels
      • Risk analysis.
      • Transparency and accountability at leadership meetings.
      • Creating strong Business cases.
      • Leadership Training and development.
      • Merger and acquisition integration timelines and approaches.

When you’re personally involved in a company, you’re often unable to view the business from the standpoint of a potential buyer, which is why enlisting the services of a business advisory such as MBC can be vital for your continued success. With us, you’ll be able to make strategic decisions that will in turn maximise expected value.