What does it mean to maximize “valuation”?
A. In any investor-oriented business plans, we generally seek to maximize valuation. In reality, our mission is much more complex; it is to maximize client objectives, which may not always be simplistic stock valuation. For instance, some clients are interested in maintaining management control of their company. For others, it may be to be number one but in a limited niche, or do something social redeeming. regardless of shareholder value. Even in maximizing shareholder valuation, there is a trade-off between existing shareholders and incoming shareholders, and between short-term valuation and long-term valuation. We believe that in optimizing valuation therefore is highly nuanced. Any business and transaction scheme optimized for one parameter is usually mathematically sub-optimized for the other parameters. Our first objective is always to define our client’s objective(s), and then to find ways to maximize it (them).
