When a deal structured is for ‘me, myself and I’

LET’S face it, when companies come to the capital markets, it is only because they need capital from other investors or it is because they want to realise value.

Companies who need capital tend to sugar-coat their normal behaviour patterns, and will generally show the side which emphasises that their corporate actions are to benefit all investors and the company as a whole. However, the selfish side will emerge when a larger shareholder wants his way. The issue of how much you own, matters most when you want something. Time and time again, those investors or shareholders who have a big stake in a company often push through deals or changes that they want at the expense of smaller shareholders. Nothing new and often a very painful experience.