The acceptance of a new idea, one which is counter traditional, requires the open mind of someone seeking improvement.
Royalties are the better way of both investing in and financing of privately owned companies. Why?
Because there is less risk in basing an investment on upward trends of revenues than on predicting specific levels of per share earnings.
Because in royalties there can be a continuing collection of agreed levels of payment and quarterly distributions, reducing risk.
Because for business owners the growth capital wanted to increase revenues can be obtained without reducing their ownership in the business.
Because owners are able to continue making decisions regarding company expenditures which may reduce reported profitability.
Because the market valuation of the company will be higher once the benefit of the use of funds received for the royalty are reflected.
Because funds may be more easily obtained, with less conflicts and use restriction, from the sale of royalties than equity.
Because, if the company is successful in achieving its projected revenues, the company will always be anxious to repurchase the royalty.
Not everyone can now see the depth of the benefits of royalties, but in time many more will.
Of course, there will always be those who can only see flat images.
Arthur Lipper, Chairman © Copyright 2019 British Far East Holdings Ltd.
British Far East Holdings Ltd. All rights reserved. May 22, 2019
chairman@REXRoyalties.com 858 793 7100 (Pacific time)