The objective of an equity investment firm is not just acquiring a company to sell at a profit, but also inspire confidence amongst its stakeholders. One must consider the fact that an equity management firm thrives on capital investment. The companies, corporates and individuals providing this capital are the stakeholders of the equity management firm. Thus, the company management must ensure the stakeholders of high returns and excellent dividends on the investment made.
According to Anthony Munk Senior Managing Director of ONEX Corporation, the management of an equity investment firm must inspire confidence amongst stakeholders on one hand and in the acquired firms on the other. Having acquired a Bachelor’s degree in Economics from Queen’s College, Munk began his career as a Business Analyst with Guardian Capital back in 1982. Since, then he has steadily climbed the corporate ladder to become the Senior Managing Director of ONEX Corporation. He has been associated with ONEX for nearly 30 years.
Munk believes that the best method to acquire the confidence amongst stakeholders is to show them a balance sheet, wherein the revenue earned is higher. According to Anthony Munk some of the best methods of increasing the revenue of a company is as follows:
- ONEX Corporation management takes active interest in the wellbeing of the acquired or merged companies. It not only advises them, but also provides the firms with active support with capital investment, restructuring, cutting down on production cost and providing business solution to increase productivity. This subsequently ensures increased productivity and greater revenue.
- Munk also believes that reinvesting of capital is essential to show an increased profit margin. It is one of the advisory activities of an equity investment firm to provide avenues to reinvest capital. The returns and the dividend earned are also a part of the overall revenue earned by the company.
- Most equity investment firms acquire or merge companies to sell at a profit. However, this is possible only after the company has undergone intense restructuring and has shown excellent profits consistently. Only then will the equity investment firm will be able to sell the acquired or merged companies at a profit. On being able to do so it will be able to retain stakeholder confidence.
- An important method of ensuring increased productivity is by proving loyalty to employees. Most equity investment firms deal with market sensitive information. Hence, it is essential to inspire loyalty amongst employees to ensure that they work efficiently.
Thus, Munk believes that stakeholder confidence can be acquired only through resilience and careful evacuation of the market condition.
Even though Anthony Munk was born in a business family, he went on to acquire his business acumen through learning and experience. Munk’s business acumen has initiated other corporates like SIG Combibloc and Cineplex Entertainment to hire him as associate director. Munk continues to do justice to his role as a Senior Managing Director, Associate Director and Board Member of all the corporates that he is associated with in an excellent manner.