Developing and executing on an effective corporate access plan is a key component of any investor relations strategy to increase awareness of and generate interest in your company’s story with the goals of expanding the shareholder base, supporting the stock, and broadening research coverage, while also maximizing the ROI on management’s time. Below are 10 tips when thinking about non-deal roadshows (NDRs) as part of your overall corporate access plan:

 

  • Approach strategically: Start with a targeting exercise to develop a game plan of appropriate investors to pursue based on metrics such as peers’ holders, stage of development, commercial traction, and your company’s specific objectives such as future financing goals.
  • Leverage your corporate calendar: Plan NDRs around data, key milestones, corporate updates, and scientific meetings. Investors, particularly those familiar with your story, are much more apt to meet with you when you have something new to say.
  • Execute on the game plan: Rotate geographically through key regions and countries and try to avoid competing against investor or medical conferences. While there is no “right” number of NDRs or meetings to target, two per quarter is a good general rule of thumb. In this largely virtual world in which we currently live, management can be much more flexible and efficient, even targeting multiple geographies in a short timeframe.
  • Be systematic in your approach but nimble: Revisit your NDR plan regularly and revise around previously unanticipated news and events including changes in market conditions. If you have bad news/data, do not hide. Use that as an opportunity to explain your go-forward plan to Wall Street and why your story is still attractive.
  • Know your audience: Understanding things such as the firm’s investment approach, stocks of peers they hold, and whether you are meeting with a generalist or a sector specialist can help you tailor your message accordingly and make for a more productive meeting.
  • Expand potential investor pool: While attracting institutional investors is a primary focus of most companies, supplementing this outreach to target high-net worth investors/family offices/wealth managers can help drive awareness for your company, improve trading liquidity, expand the shareholder base and support/drive your share price.
  • Remember existing shareholders: Continuing to nurture relationships with your current investor base through regular dialogue is vitally important; do not lose sight of this in your quest for new investors.
  • Do not just focus on investors: Target sell-side analysts and bankers as well, with the dual goal of broadening analyst research coverage and securing invitations to sell-side investor conferences.
  • Solicit feedback: Feedback from meetings is critical in helping management understand investor sentiment and refine its message if it is not resonating. Ask the host of your NDR to gather feedback – while some investors do not provide feedback as a matter of policy, those who do are more likely to provide candid feedback anonymously to a third party than directly to management.
  • Follow up: The ultimate goal of every investor meeting is to convert that meeting into an eventual shareholder. Send a note after your meeting, ask if they would like to be kept up on future corporate updates, and be responsive if any investor proactively reaches out to you.

 

Remember, cultivating new, and enhancing existing, relationships with investors and sell-side analysts takes time. These are long-term relationships you are trying to build. Do not expect investors to buy your stock immediately or research analysts to initiate coverage after having just one meeting. Be patient as they do their due diligence, which often takes multiple meetings or conversations.

For a more in-depth conversation about your corporate access needs, feel free to contact us.