Ann: IVE Group Reaffirms FY24 Guidance, page-8

@PortfolioPlus

Which are your winners with strong vested management out of interest?

To be fair Matt Aitken has been thrust into the role following the untimely passing of major shareholder and Chairman of IVE Group. In Enero's case Scrimshaw is reasonably new to the role and I'd like to see him purchasing shares too, particularly as they haven't been frightened to do share buy-backs.

I also prefer founders with strong equity interest, particularly their own capital. Wellcom was an excellent performer in the advertising/printing space and Wayne Sidwell an exemplary model for founder-lead success. Never raised equity and from memory never issued equity employment incentives either.

I've seen controlling founders stuff it up too, particularly making the transition from private to public. So many come undone in buoyant markets when they become seduced by P/E magic. That is, making acquisitions of businesses on low PE's and watching the market re-rate the extra earnings at the elevated market PE. Usually it's debt or loss of focus on the core businesses that brings them undone.

Trouble is you can come up with a pretty reliable wish list of what should be a great company but it's nigh impossible to find candidates, particularly with value screens (give or take a bear market every decade or so). So one has to make a concession somewhere but I agree that quality of management and proper incentivisation is generally one attribute you shouldn't avoid.