Comstock works with management to reduce a business’s risk to access capital on superior terms.
SUCCESSFUL INVESTORS CONSIDER RISK AS WELL AS RETURN
Significantly lowering a company’s risk improves its chances for success.
Lower Cost of Capital
A low-risk company can borrow on improved terms with respect to both rate and less restrictive covenants.
Higher Sustainable Valuation
A low-risk company attains a higher sustainable valuation, resulting in reduced dilution and an enhanced exit value.
More Possibilities
Lowering a company’s risk increases the universe of potential investors and/or acquirers.
Most companies have a low level of risk awareness, exposing them to risk they aren’t even aware of.
Boards spend only 9% of their time considering risk.
(2017: 1,126 sample)
Only 6% believe they are effective at managing risk.
“On strategic opportunities and risk trade-offs, boards should foster explicit discussions and decision making among top management and the businesses.”
McKinsey: October 2018
Risk Resiliency
We live in a rapidly-moving, ever-changing environment: economics, technology, politics, regulation, international events, strikes, and disasters.
Every business faces new opportunities and threats almost daily. To win, a business must first survive.
Risk-resilient strategies enable you to:
- Withstand sudden and unexpected challenges
- Quickly identify critical changes in the firm’s business environment
- Readily develop responsive strategies and tactics based on the current strategy and positioning of the firm
