6 Key Considerations & Tips For MicroCap Investor Roadshow Success
Roadshows are an integral part of investor relations.
Roadshows are especially important for microcap public companies who have little analyst coverage, lack significant buy side knowledge/interest, require outside funding for growth, and have less options to grow their shareholder base.
IRmagazine.com always shares great advice for microcap IR and they recently shared a post titled “What makes a great investor roadshow?” where they shared 6 Key Considerations & Tips For MicroCap Investor Roadshow Success.
6 Key Considerations & Tips For MicroCap Investor Roadshow Success:
Advanced planning: Schedule investor roadshows as far in advance as possible. Advanced planing will allow you make sure management is prepared and fully available while giving you amble time to schedule investors. Duncan Browne, IR manager at Saga, says: “IR departments often fall into the trap of focusing on the front-end activity, with roadshows left as an afterthought – they need to almost be the first consideration in any IR plan.”
Exercise target control: It’s important that management teams work with their investment bankers and outside advisers to target specific investors that management wants to meet. Bankers and advisers often have their own agendas and may try to introduce a microcap to their best clients rather than investors that are the best fir for a company. Consider existing shareholders and potential investors interested in your space, company stage, investment type (direct or market), etc.
Obtain feedback: Roadshows don’t start or end in the actual meeting/presentation. A roadshow should be a two way dialogue in which feedback is received before, during, and after the actual event. Feedback should be tracked and analyzed to improve future presentations and determine best methods for following up.
Consider the logistics: Organization is one of those little things that can have a big impact on how management and attendees perceive the success of an event. Make sure meetings are timed right, venues are appropriate, required technical equipment is accessible, etc.
Provide high-quality insight: Detailed insight on the investors you are meeting with will enable you to tailor your presentation and ensure that the meeting is as effective as possible. Be sure to understand what your atendees are interested in and how you might be able to work together.
Understand your management: Set up events in which you management will be comfortable and on their “A game”. Ask yourself; Are management morning people, do they like big meeting or small settings, etc.
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