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Corporate Governance

 

            In the article "Molson clan seen with sale proviso" written by Bertrand Merotte, he brings up the nagging question of whether or not the Molson family will sell their brewing company. Although many thought that a buyout or take over would happen, the probability of this outcome could come to fruition further down the line. Merotte writes that the family will not sell or accept any bid until they feel as though Molson's shareholder value is realized, according to analyst Michael Van Aelst of CIBC World Markets Inc. The analyst goes on to suggest that Molson Inc. will not sell shares until it has captured a significantly greater part of the EBITDA (earning before interest, taxes, depreciation, and amortization) potential that exists.
             In order for Molson Inc. to capture a greater part of their EBITDA, they must not only operate more effectively, but also operate efficiently from top to bottom. In order to continue with an ongoing initiative to increase shareholders" wealth, a long-term plan along with tactical methods to operate in the short-term must be coordinated throughout the business. Molson must set a unique strategy in order to provide a different and innovative way of providing value to its customers and shareholders. In the case of Molson's, their needs-based positioning must be reworked to provide something different, yet with the same quality as Molson's have always delivered. Molson CEO Dan O"Neill said that there are no plans to make any global acquisitions in the next 3 years. One must question a strategy that does not look at the global marketplace, and the unreachable limits that it presents.
            


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