Recently we assisted a client that was announcing an important corporate update (in this case clinical data) and vital context regarding future events. We decided the material was significant enough to warrant being presented in person, so that ruled out the option of just hosting a conference call.
The next decision was how to proceed. Many companies host Analyst Days, a half- or full-day presentation space in New York (typically). While Analyst Days are great, we had developed three key message points with the company, and these were crucial. Our definition of success was that these messages be clear, concise and delivered with impact. We worried that these messages might de diluted in a half day presentation.
A well-run Investor Day can be an incredibly valuable part of your investor relations strategy. It’s a great way to cultivate relationships with existing investors and covering analysts, and to introduce/enhance prospective investors’ and analysts’ understanding of your story.
Timely and strategic planning are integral to hosting a successful event. Drawing on our many years of attending and participating in Investor Days, we can be a valuable resource as you prepare for yours.
Once you’ve made the decision to host an investor day, there are a few critical things to accomplish before announcing it publicly — namely, selecting the date, location, and speakers. A well-planned event is much more likely to be a well-attended event. How can you avoid mistakes and plan an effective investor day? Below, I share a few strategies.
Select the right date.
No one wants to send out a “save the date” announcement only to find out that most of your anticipated guests have a conflict. Be careful to consider Wall Street conferences, previously scheduled investor days by companies your covering analysts also follow, and religious holidays. All of these have the potential to prompt an investor to make the tough decision to skip your event and just listen to a replay of the webcast.
An investor day is a perfect opportunity to get the public up to speed on your corporate story, but compiling the appropriate guest list can be tricky. Having coordinated nearly 100 investor days as a firm, we know exactly who you should be targeting to attract the perfect audience for your event.
Current shareholders and covering analysts
First, and perhaps most obvious, you should invite your current shareholders and your covering analysts. These two groups have a vested interest in understanding every aspect of your business and will be most engaged and active in the discussions during the event. Additionally, given their relationships with your company, this group will show the highest attendance rate.
How can you align your investor relations (IR) efforts with your overall corporate strategy and messaging? How do you balance IR activities with other demands on your time as a management team? Here are several tips from the Westwicke team to help ensure that the strategic investor relations plan you create at the beginning of the year delivers the desired results.
When done well, an Analyst Day (or Investor Day) is an extremely valuable investor relations tool. Typically a half- or full-day event your company hosts for buy- and sell-side analysts, an analyst day meeting can significantly enhance an analyst’s understanding of your company’s fundamentals, as well as aid them in better valuing your stock. At Westwicke, we have participated in hundreds of analyst days over our careers, and this experience lends valuable third-party perspective that has helped many companies hold successful analyst day events. To that end, I offer some do’s and don’ts for analyst days compiled over Westwicke’s years on Wall Street:
Do hold an analyst day every 18-24 months. The event provides investors with a deeper-than-normal dive into your company, and helps demonstrate your management team’s breadth and strategic vision.
Do provide unique content. Think about including members of the management team that investors don’t normally interact with. Consider bringing in physician experts or customers to provide an outsider’s perspective on your products or market. In the planning stages, ask both buy- and sell-side analysts for input.