Shareholder Expense Management Programs
We minimize the cost of servicing shareholders - while fostering continued investor goodwill - through a series of customized programs tailored to the individual needs of our clients, including:
Small Shareholder Buyback Programs and Merger Resolution Programs.
Shareholders owning fewer than 100 shares often own, in the aggregate, only a small fraction of the issuer. Yet, the expense of servicing these shareholder accounts typically is disproportionately large. Providing a convenient, cost-effective mechanism for odd-lot shareholders to sell their shares can dramatically reduce annual carrying costs without impacting the market price of the issuer’s common stock. Our programs usually include an option for shareholders to increase their investment to a round-lot of 100 shares.
Our analysis of the issuer’s stockholder base enables us to develop reliable projections of shareholder participation based on actual experience in numerous similar transactions.
Subject to client review and approval, our Small Shareholder Buyback Programs typically are self-funding (i.e., issuer cost-free).
Over the years, our programs have saved our clients millions in annual shareholder expenses. If you have not already spoken with us about this service, we urge you to call or e-mail us for a no-obligation analysis today.
Following a merger, an acquired company’s shareholders often are required to exchange their certificates for the stated merger consideration – usually stock of the surviving company. As a general rule, however, six months after a merger, up to 30% of the acquired company’s shareholder base remains unexchanged. Locating these shareholders and completing the exchange can be challenging and the associated costs are significant.
King has the experience and resources required to locate an acquired company’s unexchanged shareholders and to manage the entire exchange process - even when lost certificates are involved. Our Merger Resolution Programs ensure that shareholders receive their entitlement prior to escheatment, reducing the issuer’s annual transfer agent expenses, updating ownership records and providing the assurance of knowing that all mandatory efforts to locate unexchanged shareholders have been fulfilled.
Our analyses accurately estimate the number of shareholders who will benefit from our program. Because our programs are self-funding, the entire savings can be realized without cost to the issuer.
Over the years, we have reunited investors with many $ millions in merger consideration, significantly reducing shareholder expense and escheatment costs. If you have not already spoken with us about this service, we urge you to call or e-mail us for a no-obligation analysis today.
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