Whether your company is on the road to an initial public offering (IPO) or currently operating as a publicly traded company, cultivating and then maintaining a strong relationship with Wall Street requires strategic planning and thoughtful execution. Interacting with the buy-side and sell-side is not a simple process, and we often observe companies making mistakes in their investor relations (IR) programs that can damage management’s credibility with the Street.
What are some common IR mistakes healthcare companies make, and how can you avoid them? To answer, I turned recently to the Westwicke team — and its more than 200 years of combined Wall Street experience. Here’s what they told me.
For public healthcare companies and those on the road to an initial public offering (IPO), crafting an effective investor relations (IR) program is essential, and can significantly enhance the investment appeal of your company. Whether your company’s investor relations efforts are new – say, the result of going public – or just in need of a fresh perspective (let’s call it a “reset”), it’s important to keep in mind a few core elements as you plan.
This time of year, Wall Street is abuzz with opportunities to meet, greet, and hear firsthand from you and your management team about what’s happening with your company. There are requests to “go on the road” with virtually every sell-side firm, whether an analyst from the firm covers your company or not. There are also countless investor conferences, bus trips, and industry events — all of which you will be asked to participate in.
The buy side values access to the C-suite probably more than anything else. In fact, many of the major investment firms base the commission they pay brokers on how many management teams they provide access to each quarter. A great deal of money is tied up in these events, so they are important.
Right after you report earnings is the ideal time to get out on the road and tell your story to the Street. Sell-side analysts are incentivized to market with management teams, so they are always willing to sponsor a non-deal road show (NDRS). It’s critical, however, to pinpoint the right city and sponsoring analyst to make the most of the trip.
Non-deal road shows involve planning and work but can deliver meaningful results. Below are what we consider the top 10 benefits.
It is fair for any executive to believe that his or her business’s strategy and ability to execute are what will ultimately dictate its fate with investors, not how those strategies and results are communicated. In principle, that may be true, and we can probably all pick out a few cases to prove that point. However, in practice, we believe it cannot be overstated how much a company or management’s credibility can be at stake based on the approach taken with investor relations and communications – especially the investor presentation.
Whether for a one-on-one at a conference or an IPO road show, your corporate presentation remains a critical piece of your investor relations strategy. A PowerPoint file may seem trivial compared to the entirety of your enterprise, but the investor presentation remains one of the most tangible and effective tools for building (and losing) investor trust and engagement.
With nearly 200 years of Wall Street experience combined, we have seen a wide variety of healthcare company presentations. While many successfully focus investors on key value drivers, just as many run into pitfalls that can betray the company’s intended message. Could your presentation be starting your investor interactions on the wrong foot?
2013 was an incredible year for the United States initial public offering (IPO) market — the best since 2000. Of the 222 companies that went public, a record 55 companies (or 24.7 percent) were from healthcare, which experienced more IPOs than any other sector. Will healthcare break the 55 IPOs record in 2014? Time will tell.
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.
Investor meetings are essential for managing and expanding your shareholder base. They provide investors with clarity on a company’s story and can allow you to gauge potential investor concerns, but most importantly, they provide management the opportunity to control the story being told to investors.
The buy side often views a meeting with management as a critical component in their due diligence process. Even in the wake of increased scrutiny from SEC regulators regarding Reg FD, these meetings give the buy side more insight into a company story, recent developments, and potential headwinds.
Posted on December 5th, 2013. Posted by Robert Uhl
Not long ago, I had the enjoyable task of serving as moderator for the recent evening program of the San Diego National Investor Relations Institute (NIRI) Chapter titled “Do’s and Don’ts from the Buy Side and Sell Side.” The panel of two buy-side investors and two sell-side analysts, who cover the technology and life sciences sectors, provided a lively discussion and an abundance of practical advice on the art of practicing effective investor relations (IR). We touched on just about every aspect of IR, from non-deal road shows to the corporate website, and even the perfect length of time for the safe harbor statement on a conference call. Here are some of what the panel considered the top do’s and don’ts for investor relations.