The 7 Key Aspects of Investor Relations
Creating an investor relations strategy is no small task — but it’s a critical step for any public company. To meet the expectations of investors and analysts, company leaders must develop a strategic approach for messaging, earnings calls, guidance, conferences, investor interactions and more. While that can seem overwhelming, an effective IR process actually boils down to just seven essential elements. With a plan for each of these areas, you can build a quality, long-term shareholder base and enhance equity market value.
1. Investor Relations Strategy and Execution
A well-crafted investor relations plan can significantly enhance the investment appeal of your company. With the right strategy, you can build credibility with the investment community, target relevant and informed shareholders, and maintain a strong relationship with Wall Street.
2. Messaging and Presentation
Crafting a compelling, consistent company message can help you build credibility with shareholders and shape investor perception. From the content in your investor slide deck to your approach for sharing bad news, every interaction you have is an opportunity to influence how the investor community sees your company.
3. Interacting With Investors
As you look to generate a broad and stable shareholder base, you will have many interactions with current and potential investors. By learning how the buy side operates and effective strategies for targeting the right investors, you can make sure you build the best team for your company.
4. Working With the Sell Side
Most sell-side analysts who cover your company will remain your partner for the long run. Whether you’re already public or on your way to an IPO, put thought into who you want to cover your company and how to most effectively work with them.
5. Guidance and Disclosure
All public companies face the challenge of helping the investment community understand their business. The practice of providing financial guidance is a powerful tool for helping the market realistically frame its expectations.
6. Quiet Periods
Formal and informal quiet periods carry different guidelines and expectations, and it’s critical to understand how to approach both types to maintain a productive relationship with investors during these times.
7. Earnings Call Preparation
Hosting the quarterly financial call is a basic task of a public company, but companies often struggle with making them as effective as they could be. Fortunately, there are a few simple steps you can take to prepare for and deliver a great earnings call.
Want more in-depth information? We cover each of these seven aspects in detail in our eBook, “Insider’s Guide to Public Relations.” With detailed recommendations and deep insights, this guide provides everything you need to know to develop a comprehensive, well-rounded investor relations plan.
ICR Westwicke is the largest healthcare focused investor relations firm in the country. We provide customized investor relations programs and independent capital markets advice to small and mid-cap healthcare companies.
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