Investor Relations

Bringing in new shareholders, getting listed—or going public, as it is also called—or issuing new securities implies competing against hundreds or even thousands of companies all looking for partners to finance their development. These companies are often referred to as “the issuers.” They may be from the same sector or come from entirely different economic areas. They may be of comparable size, larger, or smaller. And they may be active in the same country or run global operations.

In order to effectively use Investor Relations as a competitive differentiator on financial markets, a specific mindset needs to be adopted by the company. It is going to be a combination of the following: Clearly defined goals,Management’s commitment,Organizational efficiency,Quality information systems,Understanding of and compliance with legal obligations,Ability to anticipate future changes in financial communications. Applying each of the principles listed above, with an integrated vision shared by the entire executive team, is going to be mission critical in achieving best-practice Investor Relations in a measurable way.

Whether your organization is planning an initial public offering (IPO), a secondary offering, a bond issue, or whether you are an entrepreneur looking for venture capital to finance your growth, Investor Relations is a tool to be leveraged and a process to be mastered by anyone competing for capital.

Yes, Investor Relations can and should be measured, and the payoff of a strategic Investor Relations program demonstrated.

The dynamic and complex nature of the capital markets may challenge management to isolate the impact of effective Investor Relations and corporate communications from broader market forces. In addition, there is the deeply rooted belief that results will “speak for themselves” and that Investor Relations are costs that can be easily done without.