A research paper issued by Chartered Professional Accountants of Canada (CPA Canada) and Canada’s Venture Capital & Private Equity Association (CVCA) explores how to successfully create shareholder value in today’s unsettled marketplace.

Strategies for creating shareholder value in a low growth environment, looks at companies that have outperformed the market. The paper offers valuable insight and strategies from four diverse and accomplished Canadian companies – Birch Hill Equity Partners, Cineplex Inc., Constellation Software and GoodLife Fitness Club.

By developing entrepreneurial work environments, the companies core business strategies; acquisitions, capital discipline, operational excellence, and innovation to drive shareholder value were executed, developing increased shareholder value.

“There is no one-size-fits-all solution to creating shareholder value,” stresses Carol Raven of CPA Canada. “The research provides guidance to organizations, corporate finance practitioners and other advisors on different approaches that can be utilized to create shareholder value in challenging times.”

The research outlines six elements that contribute to an entrepreneurial environment within an organization:

  • strong management team who adopt open and frequent communication
  • employees passionate about their jobs
  • being attentive to customer needs
  • progressive approach to risk management
  • using debt in moderation within the capital structure
  • implementing a long-term perspective for creating shareholder value

“It’s important to note that these six elements are all linked,” says Mike Woollatt, CEO, CVCA. “They need to all work together and in parallel with the organization’s business strategies to be effective.”

Strategies for creating shareholder value in a low-growth environment is available for download on the CPA Canada and CVCA websites today. A corresponding video has also been released and can be viewed here.