Clare Capital was the financial adviser to Environmental Offshore Services on the sale of the business to SLR Consulting.
Environmental Offshore Services (EOS) was a Nelson-based company specialising in offshore oil and gas environmental regulatory regime consultancy. EOS was owned by founder Dan Govier. Services include:
Clare Capital was the financial adviser to NZX Limited on the sale of their online news business, NewsRoom to Sublime Group Limited after NZX conducted a strategic review of options for the business.
NewsRoom is a subscription-based online news service which sends unfiltered press releases, announcements and opinion material to paying subscribers. NewsRoom was established in 1996 and was acquired by NZX in 2007. It’s news feeds serve New Zealand’s top legal and accounting firms, large corporations, government departments, and parliamentary offices.
NewsRoom draws their material from three different sources; free content supplied by organisations and individuals, purchasing content from specialist providers and a designated in-house NewsRoom team creating content on key political stories. Subscribers receive their information via NewsMail (email), intranet feeds and website feeds.
If you ask the simple question of “what is a share price?” – many people struggle to answer. People will have an opinion on whether the share price of Telecom or Air NZ is too low or too high – but they can’t answer the simple question of “why?”. I usually get an answer about assets – but nothing very specific.
So how does (or should) an investment banker think about the value of a business?
I am going to use a minimum of jargon here – I promise. Please see the glossary page for some definitions of valuation terminology, why various terms are used and more information about the valuation methodology.
We are going to cover valuation techniques in a separate post – but here is the Valuation 101 of how investment bankers determine if a share is currently undervalued or overvalued. We use a piece of financial economics called a discounted cash flow (DCF) model. This is a key part of corporate finance. Now value does not always equal price – but as the Benjamin Graham quote goes, “In the short-term, the market is a voting machine and in the long-term a weighing machine”.
The DCF is the primary method in corporate finance theory for calculating value. In corporate finance – value is a DCF…
My name is Mark Clare and I am an investment banker working in New Zealand.
There is a lot of misconception and misunderstanding about the work I do. My industry is partly to blame for this situation. There is not a lot of “openness” in investment banking (or “IB” as it is called by insiders). But this is the 21st century – and everything is in a state of flux.
I am building a 21st century investment banking firm – I want it to be the first choice of anyone seeking corporate finance advice in New Zealand. This blog (a term I am not afraid of) is part of that process.