Of all the well-worn clichés that should be retired, “maximizing shareholder value” is surely toward the top of the list. Since private companies don’t have constant public market feedback, attempts to “maximize” shareholder “value” are destined to end in frustration. While private company managers are not able to gauge instantaneous market reaction to their performance, they do know who their shareholders are. Wouldn’t it be better to make corporate decisions based on the characteristics and preferences of actual flesh-and-blood shareholders than the assumed preferences of generic shareholders that exist only in textbooks? If so, there is no substitute for simply asking. Here’s a quick list of five good reasons for conducting a survey of your shareholders.
For more information about conducting a shareholder survey, check out the article “5 Reasons to Conduct a Shareholder Survey.”
To discuss how a shareholder survey or ongoing investor relations program might benefit your company, learn more about our Corporate Finance Consulting or give us a call.