How to win the competition for capital

Investor View ()

In the economic downturn and with the continued strain on the availability of financing there is real competition for capital in the market. Investment professionals tell us that companies can improve their chances of securing the right funding at the right price with some simple voluntary disclosures.

In this investor view, we bring together the key messages on cash and debt reporting that we hear from investors, and describe how management can improve their voluntary disclosures to better communicate with the capital markets.

Investors tell us that without good disclosure, “the cost of funding goes sky high”; companies that do not make their cash and debt disclosures clear and accessible risk a struggle to raise capital or borrow funds.

Investors have highlighted three key areas from where management can make small changes to disclosures that would have a significant impact on their ability to compete for ever more scarce capital in today’s market:

  • Cash
  • Net debt reconciliations
  • Debt

So why are these disclosures important to investors, and what might good practice disclosure look like for your entity?

Watch our series of short webcasts featuring investors talking about these issues here.