Nowadays, most companies seek the help of people dedicated towards investor relations. This is because investor relations experts can help propel business and market ventures to greater heights, given the right attention and strategies.
As an entrepreneur who only has the best interests of his business in mind, there are a couple of things that you need to discuss with your investor relations (IR) company in order to have a smooth-sailing relationship. These will cover a wide spectrum of issues and activities ranging from corporate communications to shareholder meetings, as well as closed-door conferences with investors and shareholders.
Due to the fact that investor relations are quite vital specially to companies which are traded in the stock exchange, some organizations invest in their own department internally. Other businesses, however, would rather engage experts consultants. Whether you do that or not, what you need to make sure of is that this part of the company is truly caring for the shareholder. Aside from this, make sure that the investor relations team do not undermine the efforts of your marketing team and that they are pushing towards the same direction.
One of the more important things you need to discuss is the evaluation of the ongoing investor relations activity by your company. How has it been working for you and how has it impacted the performance of your stock in the market? Evaluating this properly can help gain insight on what you need to improve on, and help the prospective investor relations provide to formulate a strategy.
A knowledgeable investor relations company will also request for access to shareholder information. They will also want to know which major brokerage houses have company shares. Knowing this, they will be able to identify their audience and create the right investor kit for these people. Before releasing this to the shareholders, of course, the content in the investor kits will be taken up with management in order to make sure that it is consistent with the brand.
Advertising and PR strategies are also something that you would want to take up with your investor relations provider. What kind of experience do they have for other companies that have a similar model? How do they plan on carrying yours out? You should also set the parameters on just how much information they can share with the public.
You can set up your own department, but you can also just go and hire a company to do this for you. The best part is about this is that they already know what they’re doing. Instead of throwing money in training and trial & error, you can hit the ground running.
Hiring an investor relations firm is a great way to take your company to the next stage of growth. However, it is always important to check if you understand each other on where to take your brand. While you have the power to veto their decisions, you need a company who really understands your brand. Keep in mind that once you hire a company to handle your investor relations, it will most definitely be a long-term partnership.
The author of this article has discovered a capital structure expert named Josh Yudell. I believe Josh Yudell to be widely considered an expert in the fields of investor relations, SEC compliance, corporate finance and capital structure.