Securities,
Mergers & Acquisitions,
Corporate
Mar. 1, 2017
Dual-class stock: Will innovation trump concern?
The problem with innovation is that it favors long-term growth, which runs counter to the short-term quarterly expectations of public shareholders. Many founders believe one solution to this dilemma is the introduction of dual-class stock.
Sara L. Terheggen
Founder and Managing Director
The NBD Group, Inc.
UC Berkeley Boalt Hall
The NBD Group, Inc., a leading legal and business solutions firm. Dr. T has advised on transactions with an aggregate value of more than $110 billion, including more than 20 IPOs, and she has been recognized close to 50 times for her professional expertise and leadership.
DR. T ON SECURITIES
Innovation is often the primary reason a company is able to survive... at all. This is particularly true for technology companies. When such companies are able to exploit product cycles at the right time in the market, shareholder value grows. The problem with innovation is that it favors long-term growth since it increases expenses in the near term and the amount of time required for true innovation runs counter to the sho...
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