Equity Management Firms As Advisory Bodies

Few people know that most equity management firms provide excellent advice regarding capital investment.  All equity management firms thrive on capital investment. However, capital investment requires thorough evaluation of the present market condition. An equity manager must be able to assess the market dynamics correctly. Before an investment can be made it is essential to estimate and predict the rate of return. This is essential to gain stakeholder confidence and ensure good returns on an investment.

Equity Management Firms As Advisory Bodies

As the Senior Managing Director of ONEX Corporation Anthony Munk has been involved in many capital reinvestment decisions. Munk has a Bachelor’s degree in Economics from the prestigious Queen’s College. Along with that he has nearly 30 years of experience as a business consultant, analyst and strategist. Munk mentions that much of capital investment depends of speculation. However, he cautions that the speculations must be done after careful consideration of present day market dynamics.

Some of the advice that equity management firms provide their clients are as follows:

  • Acquisitions: On acquiring a company the equity management firm will advise and participate in the restructuring of the firm. Although the private equity investing firm can now be considered as the ‘owner’ of the acquired company, yet it plays mostly an advisory role. Munk believes that if the advice regarding capital investment and production management provided by the equity manager is adhered to, it is bound to produce excellent results.
  • Mergers: Anthony Munk strongly believes that mergers are essential to consolidate the position of two or more firms. Additionally, he believes that merging is essential in the fragmented sectors of the economy. An equity manager will provide advice regarding suitable mergers that will produce a positive impact on the revenue earned.
  • Investment: An equity manger is the best person to provide investment advice. Munk believes that equity management firms can help stakeholders and clients choose suitable options for capital investment. Although, it depends largely on market evaluation, yet the equity management firm is uniquely positioned to estimate the returns that can be earned on an investment.

Hence, Munk believes that a private equity investment firm plays an important role as an advisor directing individuals, corporates and companies to choose a suitable mode of investment. Additionally, most equity management firms are also business consultant. Hence, corporates often hire the services of equity managers to evaluate the returns that can be earned from an acquisition of merger.

Anthony Munk believes that the success of an investment lies in understanding the market dynamics. Having learnt the workings of an equity management firm from grassroots levels Munk is in an ideal position to provide investment advice. Additionally, Munk also advises the companies under the aegis of ONEX Corporation and provides them with solutions regarding earning more revenue. Increased revenue indicates a higher profit margin, which subsequently ensures greater dividends or return on investment. Thus, Munk advises all his clients to consider adhering strictly to the advice given to them by their equity manager as that alone can ensure assured returns.