Squeeze Outs
Jun 30, 2017
At The Edge, we are an industry-leading research provider that is widely recognized as a reliable market voice on squeeze out analytics. Our team’s deep expertise and experience in this space allows us to deliver unparalleled analysis and insights to our clients. When you work with us, you can benefit from our stellar research capabilities, and make high value investment decisions regarding squeeze out situations.
The Edge | What Are Squeeze Outs?
Also referred to as a freeze out, a squeeze out occurs when shareholders that own a majority stake of a company wishes to gain complete control over it by buying over the shares of the minority stakeholders. If squeeze outs were to happen to joint stock companies, the stocks of the minority group can be bought over without shareholder consent. Aside from terminating minority shareholder employees, other squeeze out tactics includes refusing to declare dividends to minority holders.
In the United States, state laws govern squeeze outs. For instance, it is governed by the Delaware Code Title 8. Corporations § 253. This permits a parent organization, which owns at least 90% of the stock of a subsidiary, to merge with the latter. It can do so without seeking the consent of the minority shareholders, provided that those shareholders receive fair cash compensation. For companies in the UK, squeeze outs occur under section 979 of the Companies Act 2006.
The Edge | Why You Need Actionable Intelligence About Squeeze Outs
You will require intelligence on squeeze outs because:
- Conflicts in squeeze out situations are pretty common and can be very disruptive
- You can find out if there is any abuse of minority shareholders going on
- You can know more about the qualifications and backgrounds of the owners and the company’s primary decision makers
- You will be notified of the presence of shareholder oppression, if any
- You will be aware of any ongoing lawsuits
- You can gain more confidence and certainty when making decisions that pertain to your equity interests
- You will uncover how the minority shareholders are being voted off the governing board
- You will find out how resources are being diverted and how that affects dividends
The Edge | Why Choose Us for Squeeze Out Research & Analytics?
At The Edge, we have been in the business for more than a decade. Our expertise and experience in the area of squeeze outs is second to none. Our team of talented analysts is able to perform thorough research on corporate squeeze outs and provide reliable investment insights to our clients and partners.
As a leading research provider, you can also expect to gain real-time analysis, commentary, and news on issues affecting squeeze outs. We perform thorough quantitative and qualitative analysis and you can rest assured that fundamental research has been at the heart of our investment process since our inception.
If you find information from mainstream research about squeeze outs inadequate, The Edge invites you to take advantage of our expertise. For more information on our services, do not hesitate to contact us today!