Okay great.
The next important piece of information we should add to a company profile is the key operating indicators
of the business.
Now we are coming to grips with the size and scale of the business.
From an operational standpoint key operating indicators would vary depending upon the type of business
to give you a few examples for a manufacturing company.
It would be important to indicate the number and location of production facilities their annual unit
production output and capacity for an infrastructure business.
It would be important to show the size and extent of its infrastructure network and any related capacities
or technical specs for an electricity generation company.
It would be important to show the number and its power plants and their annual generation output and
capacity for a retail company.
It would be important to show the number and location of its retail outlets and their format or average
size and so on and so forth depending on the company profile we are creating.
We can also include information about a firm's top management as a minimum the CEO but if possible also
the chairman and the CFO it can be shown in a table or in a bullet point or two management leads the
business and its responsible for its performance.
Some management names may immediately be associated with important public or private information of
significance to the audience.
Sometimes it can be very informative if we include a corporate structure with a firm's main subsidiaries
to present a complete picture of the business.
It is useful to show a group structure with some of the main corporate entities if we present such a
chart.
We should also indicate the percentage of shareholders in each corporate entity shown going up to the
ultimate beneficial owners frequently investors are interested in a firm's ownership and it is commonly
represented with a pie chart.
This shows who owns the company we are presenting and is one of the most important bits of information
especially in mergers and acquisitions.
It is also important to know if shareholding is concentrated so a single party or consortium of parties
controls the company closely or if ownership is dispersed among many smaller shareholders.
How active or passive the shareholders are and how easy it would be to negotiate with them.
Conclusions about all these aspects can be drawn based on the shareholder chart ownership information
should go up to the ultimate beneficial owners.
This means sometimes intermediate holding companies are irrelevant and we must show the people or companies
behind them.
A pie chart is a great way to present the ownership of a company right.
Once we have covered all these topics comes the time for the real deal.
But thats the topic of our next lesson so stay tuned because next we will discuss key financials.