In our latest insights article, we plan to share some tips about pitching your company story to the investment community and building a stronger relationship with them.
By cultivating these relationships, your company will receive more visibility and gradually build its credibility. To help increase your chances of delivering impactful strategic communications, here are some of our favorite best practices from our experts:
A story about what’s next.
To articulate a compelling equity story may be one of the most critical factors determining whether investors will buy your shares or not, aside from your liquidity. It’s important to remember that the story is not only about what you did in the past to become a public company; the investors are interested in knowing if the strong track record will persist and set the course for successful future growth. A story that tells your future can distinguish your company from peers, placing a value on your business that reflects its position and potential.
Finetune and reflect.
It is easy to wrap up an investor meeting and jump on to the next. However, we think it’s essential that you utilize the meeting to gather knowledge for yourself. Keep in mind that investors and analysts often speak to your peers; the meeting is an excellent opportunity for you to learn how the market views your competitors. Treat the meeting as a two-way street; instead of presenting your slides and answering questions only, find out what the market is thinking about. Then, convey what you heard from the market to the management team, and finetune your story based on the feedback from investors.
Consistency matters.
Managing investor expectations and delivering on your promises is the cornerstone of efficient investor communication. Companies should define the key metrics that will drive the business forward and avoid changing financial metrics unless there is a compelling reason to do so. For newly listed companies, start with a smaller framework and build from there to avoid negative surprises. To thrive, the company must demonstrate to investors that they are successfully executing the business plan; by carefully selecting the metrics, the company can encourage the discussion about its performance to take place on its terms.
