As an investor relations officer, you know the importance of hitting the ground running when it comes to developing a strong strategy to help the company go public as soon as possible. It’s all about creating and fostering relations, but you must also manage expectations and keep the peace. Since investor relations is not a short-term, one-off project, it starts at day one – the time when you must first seek out investors.
“48% of IROs rated roadshows as the ‘most rewarding investor event.'”
Enter roadshows: some of the most important aspects of taking a company public. This is the most effective way to gather investors, as discovered by the IR Magazine Global Investor Relations Practice Report. According to the source, 48 percent of IROs rated roadshows as the “most rewarding investor event,” making this strategy more worthwhile than conferences and investor days.
So, the discussion isn’t whether or not a roadshow will work – they have always been a part of IROs strategies. That introduces a problem: Investors are no stranger to attending these events, seeing corporate decks or making investment decisions based solely on those engagements. The National Investor Relations Institute found that 93 percent of its 2015 survey respondents went on non-deal roadshows in 2013. This means you need to bring your A-game.
Don’t Forget to Prepare
For starters, preparation is key. Contributing to Forbes, Ernst & Young Partner and Leader of America’s IPO Markets Jackie Kelly stressed the critical nature of getting ready for roadshows by practicing, especially on presenting material. Kelly asserted that you must be able to convey your company’s story in a concise manner, as well as get investors on the management team. How you construct that presentation and tell your story is up to you, but remember that your audience wants answers and authenticity.
Be Ready to Revise
According to the NIRI, the average IRO spends 1.25 days in each city he or she visits. So, you need to work fast – which supports the concise story strategy – and you must be ready to personalize your approach on the fly. After all, you must also leave your investors with some pertinent information. This will keep your company and the investment on their mind well after you have left the roadshow.
Bloomberg Intelligence Senior Credit Strategist Richard Salditt suggested bringing a frequently asked questions sheet and giving this to investors. With supporting resources and materials, you can save yourself time by having FAQ sheets replace answering the same questions over and over. Salditt recommended putting yourself in the mind of the fixed income investor and considering what he or she might ask when creating the FAQ, highlighting important information, such as bond maturities and capital structure.
Constantly Improve Your Corporate Deck
Every destination on the roadshow journey should be a learning experience. Using the FAQ example, you’re certain to discover more frequently asked questions as you present to different investors. You should have other supporting flyers and printed materials as well as a corporate deck, and those resources should always be updated. It won’t take long to make a few corrections here and there, and you can use managed print services to have new documents delivered in any major city.
Hit Less Popular Markets with Local Brokers
Speaking of big hubs, don’t only focus on the huge cities, as smaller locals could offer just as many eager investors. However, an IR magazine survey found that IRs typically have trouble reaching other markets. The solution: Get a local broker that is familiar with the investment community in the not-so-obvious cities.
You know the importance of succeeding on your roadshows, so don’t forget to prepare and bring some additional resources if you want to set yourself on the right path.
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