Planet MicroCap Podcast | June 29, 2016
For this episode of the PlanetMicroCap Podcast, I spoke with Adam J. Epstein, Founder of Third CreekAdvisors, LLC. Mr. Epstein is a former institutional investor, well-known speaker on corporate governance, and the author of the best-selling resource created specifically for small-cap corporate directors, titled, “The Perfect Corporate Board: A Handbook for Mastering the Unique Challenges of Small-Cap Companies.”
As defined by Investopedia, Corporate Governance, “is the system of rules, practices and processes by which a company is directed and controlled. Corporate Governance essentially involves balancing the interests of the many stakeholders in a company – these include shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company’s objectives it encompasses practically every sphere of management from action plans and internal controls to performance measurement and corporate disclosure.” You can probably imagine the implications of having good or bad corporate governance in a MicroCap company.
The goal for this episode is to learn about and define corporate governance, understand why this is important when doing your due diligence and what we can do as investors to better know what we’re getting on the corporate governance front in MicroCap companies.
The Planet MicroCap Podcast is brought to you by SNN Incorporated, publishers of StockNewsNow.com, The Official MicroCap News Source, and the MicroCap Review Magazine, the leading magazine in the MicroCap market – check out the latest issue here: MicroCap Review Winter/Spring 2016
In this episode, Adam and I discuss the following topics:
– Mr. Epstein’s background
– Issues Third Creek Advisors helps pre-IPO and MicroCap companies with
– What Corporate Governance means and why is it important to keep in mind when looking at MicroCap companies
– As a MicroCap investor, what are some qualities that we should look for in a MicroCap board of directors as a whole and individually
– Typical reasons to change a board member
– What do you do when the board becomes completely uncooperative?
– Going back to one of your previous answers, you referenced shareholder activists. Is that a realistic concern for most micro-caps?
– Where most microcap boardrooms underperform
– Common governance shortcomings
– What can we do as investors to better know what we’re getting on the corporate governance front with micro-caps
– Do you have any stories, without using the names of the companies, that taught him the importance putting together a solid board
– Advice for new MicroCap investors when doing their due diligence on the board of directors of these companies
Adam J. Epstein, is a former institutional investor, and now an advisor to CEOs and boards of pre-IPO and small-cap companies through his firm, Third Creek Advisors, LLC. He speaks monthly at private corporate events, and corporate governance and investor conferences, and has appeared internationally more than 100 times since 2012. Mr. Epstein is a key contributor to Nasdaq’s Amplify small-cap content initiative, and a mentor at the Nasdaq Entrepreneurial Center in San Francisco. He writes the “Entrepreneurial Governance” column for Directorship magazine, he’s the author of The Perfect Corporate Board: A Handbook for Mastering the Unique Challenges of Small-Cap Companies (New York: McGraw-Hill, 2012), and he’s a contributing author to The Handbook of Board Governance: A Comprehensive Guide for Public, Private and Not for Profit Board Members (New Jersey: Wiley, 2016). In June 2017, The Perfect Corporate Board was the #1 ranked corporate governance book on Amazon.com, and, in June 2016, The Handbook of Board Governance was the “#1 New Release” in corporate governance on Amazon.com. Connect with Adam on LinkedIn or learn more on his website.