Excellence in investor relations communications demonstrates a commitment to transparency and disclosure and promotes detailed understanding of the company's opportunities, challenges and solutions. An absence of such skills creates an image of apathy, indifference, or ignorance. Many companies lack the resources to create an investor relations approach that can adequately represent their company to interested constituents: shareholders, customers, their community, and employees. By focusing on top quality communications, companies can represent a face to the world that educates the listener and explains and contextualizes the inevitable peaks and valleys of the company's performance.
There are a host of reasons why meetings can go wrong: temperament, timing, the topic; or perhaps a sign of dissatisfaction, frustration or irritation by one of the parties. The most common cause, however, is lack of preparedness.
Given the importance of shareholders to a company, it is surprising how any IR team members (and I include CFO's and CEO's in this) could ever run the risk of being caught out by a surprising question in an investor meeting. But it happens; a lot.
Granted, everyone is busy, there are not enough hours in the day, and larger companies in particular are complex and difficult, at times, to explain. But there is no excuse. Your core shareholders provide capital and support for management's objectives and in return are entitled to expect information and explanations on demand.
Tailor your message depending on the state of the market and the relative attractiveness of your story.
Try harder when times are tough. Investors trust IROs who communicate more during business cycle lows.
Focus on the important segments of your company and maximize your communication opportunity.
Valor IR Consulting provides solutions for a variety of concerns in the investment community. Below you can find the company's core beliefs, goals, and problems that Valor IR Consulting helps solve.
Corporate executives and their IR Officers must constantly adapt their message to stay relevant. Just as financial performance is seldom static, the environment in which companies operate is constantly changing, raising new challenges that must be recognized, dealt with, and communicated. Excellence in IR communications requires a focus on changes in corporate governance, market regulations, and other shifts in the investment landscape, in addition to expert articulation of corporate results. Anticipating and meeting those challenges head-on and addressing their implications ahead of impact raises confidence and trust in the management team.Challenges Include...
A product harms customers in several markets. Media attention damages the company's reputation and leads to customer boycotts.
Earnings fall below expectations due to unanticipated problems at an overseas facility. Missed guidance harms management credibility.
An activist investor takes a large position in the under-performing stock. Media have yet to pick up on the situation.
Communication is a two-way affair. If you contact me, I will respond as soon as possible to your needs. I appreciate your interest and will respond in kind.