McKinsey & Company - Corporate Finance - Improving the low market valuation of a company

Improving the low market valuation of a company

Over the past two years, the market has valued our client’s company significantly lower than other companies in the sector. The question facing the team is thus: How can the market value be raised? There were three main objectives:

	Better image with analysts and investors

	More responsiveness to shareholders’ requirements (the company must be able to raise more capital to finance further growth and increase its strategic flexibility)

	Limitation of the risk of an unfriendly takeover, with the danger of the company losing control over its future


	The approach: New ways of creating value

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