Admiral Global: How Private Equity Can Affect Public Markets.
Admiral Global discuss how the decrease in supply of publicly traded company shares can cause an increase in price of remaining shares.
Tokyo (I-Newswire) September 21, 2012 - With the increase in the number of private equity deals, concerns are raised of the availability of publicly traded shares in companies. A decrease in supply subsequently causes the shares remaining to increase in price and hold more value because fewer are available.
“We could argue that an increase in the number of private equity deals we are witnessing at this time is actually beneficial for certain aspects of the stock market, in that as so many companies are going private, it becomes increasingly more difficult for public investors to access exposure to industries where private equity has been positively influential. Small to mid-size businesses in the energy and finance industries are prime examples of firms that actually become more valuable” explained Martin Hurst, the Senior Market Analyst at Admiral Global.
“Furthermore, private equity can boost the value of the company’s stock if it is thought a buyout is likely. We have seen stock prices in some firms rise quite considerably over the past for companies that are perceived as likely targets of private equity buyouts, and given the trends in the private equity industry recently, investors are now feeling more secure when they assume that a healthy sized premium will be paid over and above the market value of the company. This has driven up the stock value of many companies which were consistently mentioned, hyped even, as targets pending for a buyout” added Martin Hurst, the Senior Market Analyst at Admiral Global.
The beneficiary certain to gain through private equity's strength is the financial firm who structures the deals. Many financial companies have taken their market savvy and, combined with their extensive network of contacts within the industry, have ensured that they are somewhere bang in the middle of such events and as we have witnessed, this trend has been extremely lucrative over the past few fiscal terms. However, if interest rates continue to rise over the next couple of years, the sourcing of capital and willing participants to keep these deals going at the same rate could prove increasingly more difficult.
About Admiral Global
Admiral Global is based in Tokyo and was established in 2007, with the purpose of utilising the expe More..rience of it’s founding members to expand into a group of focussed and talented market professionals.
To allow their conceptual strategies to formulate a long-term business platform that would benefit and support the growth of companies with disruptive technologies, making their innovative ideas tangible for the benefit of people worldwide.Less..
1-23-17 Dogenzaka, Tokyo, Japan
Phone : 81347058243
Published On:September 21, 2012
Print Release:Print Release
If you have questions regarding information in this press release contact the company listed above. I-Newswire.com is a press release service and not the author of this press release.The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies and PR Agencies submit their press releases once per week,month or quarter, make sure to check the official company website for accurate release dates as our site displays the I-Newswire.com press release distribution date only.We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for or omissions in that information or for actions taken in reliance on that information.
Image Master Displays Hired Expert Designers Fit To Think Out-Of-The-Box Designing Popup Displays
Book Newspaper Ads Online | Text & Display Ad in Indian Newspaper
Beautyworld Middle East 2013 To Bring The Cream Of International Beauty And Wellness Industry To Dubai
Heather Gudac Becomes Newest Partner in Financial Symmetry
The Golden Invest Ment