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Investor relations secrets

Boardroom.Media has been partnering with public companies for over a decade, and in that time we’ve helped companies effectively deliver information and insights as part of the ever-changing world of investor relations and the capital markets.


Having supported investor relations initiatives for many years, I wanted to share my view of the best practices to engage in when it comes to your investor relations strategy.


1. Cover both the good and the bad

It is easy to highlight the positive news and trends impacting your company and to gloss over the negatives. The best companies do a great job providing balanced information.


2. Stay visible

After reporting a mixed quarter, it is important to maintain a dialog with your shareholders. Investors want to be reassured that senior management is on top of managing the company.


3. Adapt

Recognise that the metrics you provide need to evolve to best demonstrate the health of your business and to allow the investment community to gauge your progress.


4. Don’t wing it

Prepare thoroughly for your earnings calls. What you say and how you say it is really important on quarterly calls and during investor meetings. Practice your delivery and make sure your team is prepared to answer any and all follow-up questions.


5. Target the correct accounts

When setting up a marketing trip, be thoughtful about whom you want to target. Balance existing and potential shareholders and don’t exclude hedge funds. Hedge funds have significant assets and can be valuable, long-term shareholders.


6. Treat analysts and portfolio managers as equals

In the investment process, analysts and portfolio managers should be seen as equals, and senior management should strive to meet with both.


7. Ignore the stock rating

Ratings are temporary and change over time. Just because an analyst has a “hold” rating on your company doesn’t mean management should cut off communication.


8. Mix up management

As you plan your marketing trips, ensure that you occasionally bring along members of senior management other than the CEO and CFO. This can include a division head, your chief medical officer, or your chief scientific officer. This showcases the depth of your management team and allows investors to get a different and broader perspective on your business.


9. Be quick to respond

The best companies quickly assess the potential impact of any bad news and proactively communicate it to their shareholders.


10. Provide guidance

The best companies recognise that increased transparency is key to attaining a premium valuation.

© 2019 by Boardroom.Media