Thursday, November 21, 2019
Case Study Example | Topics and Well Written Essays - 1000 words - 17
Case Study Example The players usually leave the portfolio companies in the form of IPOs and ensure that the companies have perfect management teams and business models that are sustainable and can stand the test of time. However, the companies will be considered to have a lower value in case they attempt to go back to the public. In general, the players were tasked with ensuring that the companies were well nurtured and became ready to be scrutinized by the public capital market after an IPO. Investment bankers will also apply their expertise in assisting the companies to go public or to make consequent. As such, they introduce the firms to the investors. The Investment banks did this by providing advisory, financial services and they helped the companies price their offerings and underwrite the shares. It was often done in the form of a road show. On the other hand, the portfolio managers also have the special role of acting on behalf of the investors. They are expected to help them buy companies that are fairly priced. This is achieved through selling companies that have become overvalued because buying or holding onto an overvalued stock will directly lead to a great loss. Sell side analysts have their own clients who include portfolio managers. Their main roles included the publishing of research belonging to public companies. As such, investors will monitor the performance of public companies objectively. This will help them to determine the suitability of the stocks as a form of investment at any particular point. Buy side analysts possess some roles similar to those of the sell side analysts. They were assigned to a particular company to conduct company research. Accountants are faced with the task of auditing the financial statements of the companies. They make sure that these companies comply with standards that have been laid down. Therefore, they act as real representatives of the true status of
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