In order to make sure that all the clients and owners get benefited, Gamco Investors Inc (NYSE:GBL) has decided to move its project ahead. As per the reports, the Board of Directors of Gamco gave approval for the next step that was mentioned in the Form 10-Q of the company.
What’s In The Approval:
Gamco has been striving hard to restructuring its business in such a way that it can not only enhance the consumer base and market reach, but also report higher revenues in the coming months. The BOD has given green light to the management of the company for the overall restructuring to ensure a wider reach and higher revenues. As per the reports, this restructuring process may lead to certain split-up transactions, but in the long run, it will have a favorable impact on company’s growth perspectives.
Reporters got in touch with the senior management executives concerning the periodic updates about the development procedure, but they couldn’t get any positive response. As per the reports, management of the company doesn’t intend to disclose periodic information to the public.
As a part of this restructuring procedure, Gamco Investors Inc (NYSE:GBL) will soon files a registration statement to ensure that its businesses could be divided into two publically traded companies. The management feels that this separation will lead to value creation for both the units in the long run. The current structure of Gamco doesn’t allow the company and its subunits to make the best use of the available resources.
Once the businesses are split-up, both the companies will have more flexibility to run its businesses. Not only can they pursue a distinct market plan, but also follow a separate capital structure and capital run policy, which are in line with their businesses. According to Mario Gabelli, CEO and President, Gamco, the company needed public’s support sixteen years ago, but now it’s in the position to plan the next 16 years as a public company.