Public Displays of Capital Injection

When the market gets tough, the tough get going. There is no doubt that the public markets provide a tremendous resource for companies trying to raise capital, expand or execute a succession plan. Periods of positive momentum in the business cycle can sometimes supplant the immediate value that would be realized by a company simply due to a warm embrace by the public. Timing and ‘buzz’ can work wonders. However, companies that may otherwise wish to apply a long-term strategy to navigating the troughs could be tempted into making hasty decisions at the behest of the public shareholder. Very often for public companies, perception becomes reality. The actions (or lack thereof) taken by companies in attempt to bolster their immediate standing can sometimes undermine the ultimate goal of long-term sustainability. Download here