Buyback of Shares

Buyback of shares refers to the repurchasing of market shares by the company that is issued to them. It takes place when the issuing company’s existing shareholders are paid more than or equal to the market price of the shares to get back the portion of its own that was previously divided among public and private investors.

WHO IS THIS FOR?

Existing companies that has a cash surplus and those who do not want to invest in its assets and would rather want to bet on themselves.

Shareholders, as the buyback share price is usually more than the market price of the share.

An undervalued company trying to get the fair value for its outstanding shares.

HOW DO I SIGN UP?

Your business/financial analysis report, financial model, valuation, pitch book, or Information Memorandum will be compiled 

NDA and mandate are signed on agreed terms after target companies/investors are reached out using a tailor made methodology.

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KEY BENEFITS

Companies that are below their average industry profitability enjoy better share price appreciation after purchasing shares than companies with profitability above their industry average.

By reducing the number of equity shareholders, the company can get more authority over the company i.e. higher ownership.

OUR PROCESS

A company might buy back shares if it believes the market has discounted its shares too steeply, to invest, or to improve its financial ratios.

Buy-back of shares or securities results in lower capital.

After buy-back of shares, the companies will have the advantage of servicing a reduced capital base with a higher dividend yield.