Strategic investor: Difference between revisions
(The LinkTitles extension automatically added links to existing pages (<a target="_blank" rel="noreferrer noopener" class="external free" href="https://github.com/bovender/LinkTitles">https://github.com/bovender/LinkTitles</a>).) |
m (Infobox5 upgrade) |
||
| (2 intermediate revisions by 2 users not shown) | |||
| Line 1: | Line 1: | ||
'''Strategic Investor''' is a business operator acting on the capital [[market]], which under the relevant legislation obtained permission to acquire large blocks of shares of privatized state enterprises, having in another unit more than 50% of the shares. It has explicit funding mechanisms designed to secure the further development of the [[company]] and the relevant qualifications consistent with the scope of the company. | '''Strategic Investor''' is a business operator acting on the capital [[market]], which under the relevant legislation obtained permission to acquire large blocks of shares of privatized state enterprises, having in another unit more than 50% of the shares. It has explicit funding mechanisms designed to secure the further development of the [[company]] and the relevant qualifications consistent with the scope of the company. | ||
[[Investment horizon]] of the strategic investor is unlimited. This follows from the nature of the investment itself. Acquired company is part of a long-term development [[strategy]] of the investor, and therefore he never defines the investment horizon. | [[Investment horizon]] of the strategic investor is unlimited. This follows from the nature of the [[investment]] itself. Acquired company is part of a long-term development [[strategy]] of the investor, and therefore he never defines the investment horizon. | ||
[[Goodwill]] valuation [[method]] that a strategic investor uses significantly deviates from the valuation techniques of financial investors. Strategic investor usually bases on the intrinsic value method of valuing a company, measured by the [[quality]] of professionals employed, its [[know-how]], and above all company's [[technology]] and market share. | [[Goodwill]] valuation [[method]] that a strategic investor uses significantly deviates from the valuation techniques of financial investors. Strategic investor usually bases on the intrinsic value method of valuing a company, measured by the [[quality]] of professionals employed, its [[know-how]], and above all company's [[technology]] and market share. | ||
| Line 31: | Line 16: | ||
'''See also:''' [[Shareholder value added]] | '''See also:''' [[Shareholder value added]] | ||
{{infobox5|list1={{i5link|a=[[Investment project]]}} — {{i5link|a=[[Core assets]]}} — {{i5link|a=[[Controlled company]]}} — {{i5link|a=[[Capital management]]}} — {{i5link|a=[[Investment fund]]}} — {{i5link|a=[[Intangible asset]]}} — {{i5link|a=[[Capital restructuring]]}} — {{i5link|a=[[Hostile takeover]]}} — {{i5link|a=[[Private equity investments]]}} }} | |||
==References== | ==References== | ||
Latest revision as of 04:13, 18 November 2023
Strategic Investor is a business operator acting on the capital market, which under the relevant legislation obtained permission to acquire large blocks of shares of privatized state enterprises, having in another unit more than 50% of the shares. It has explicit funding mechanisms designed to secure the further development of the company and the relevant qualifications consistent with the scope of the company.
Investment horizon of the strategic investor is unlimited. This follows from the nature of the investment itself. Acquired company is part of a long-term development strategy of the investor, and therefore he never defines the investment horizon.
Goodwill valuation method that a strategic investor uses significantly deviates from the valuation techniques of financial investors. Strategic investor usually bases on the intrinsic value method of valuing a company, measured by the quality of professionals employed, its know-how, and above all company's technology and market share.
Strategic investor seeks to take full control over the acquired business. The added value for the investor is created due to assimilation of industry and key assets of the acquired company's resources. Investor introduces his own system of management, technology, and often the brand.
Strategic investor usually also introduces his own concept of the future business development. The previous owner may affect the overall strategy, if he remains a partial shareholder. Strategic investor may seek to change the firm's managerial staff. The holding company acquires the benefits associated with an increase in goodwill. Non-productive burden fall on the investor.
Main tasks of strategic investor
- Acquisition of full control over the process of development.
- Ensuring close coordination of the approved development plans.
- Caring for the high intensity of investment, crucial to raise the value of the company.
- Reducing public investment, and thus minimizing the risk to the state budget.
See also: Shareholder value added
| Strategic investor — recommended articles |
| Investment project — Core assets — Controlled company — Capital management — Investment fund — Intangible asset — Capital restructuring — Hostile takeover — Private equity investments |
References
- Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2010). Strategic management: Text and cases.
