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Market value realization in the Americas
Closing the valuation gap
As foreign companies increasingly look to enter the US capital markets and US investors in turn look for opportunities abroad, shareholders are demanding more information, more access to management, and more influence in decisions from companies around the globe, including in emerging markets such as Latin America. While most companies will not be the target of a headline-grabbing activist campaign, all companies—public and private—could see benefits from improving their shareholder interactions.
Since stakeholders cannot value what they don’t understand, done well, stakeholder engagement may help minimize the gap between management’s perspective of intrinsic value and the valuation determined by the market.
To help align the stakeholder engagement and expectations with the company’s strategy and core value proposition, it can be helpful for management to consider four key areas:
- Communication choices
- Stakeholder engagement
- External feedback