Investor relations (IR) is a strategic management function that integrates finance, strategic development to support growth, communication with stakeholders, marketing and securities law compliance to enable the most effective way to contribute to a company’s securities achieving fair valuation.
Successful companies are built over time. It’s the very fine art to integrate strategy development with purposeful strategic communications that translate complex data and information into easily understood messaging. It requires transparency and the need for dedicated Investor Relations Advisory-talent to merge all of it into effective productive outcomes. I have experienced building out Investor Relations from scratch, from the ground up, many years ago, specifically in the Capital Debt Market, which is far more illiquid compared to the listed equity markets. Not a small challenge by a long shot!. Painstakingly and careful attention to strategy and re-tuning it drove the successes that followed. Successes primarily driven by strong Corporate Governance, Transparency, but most importantly LISTEN to Investor needs, requirements & ongoing compliance-, and reporting requirements. The combination of this led to many benefits that constantly multiply and developing ongoing deeper relations. The resulting outcome, the building of true two-way trust and communication.
All companies, exchange-listed and private companies, compete for the same attention and investment dollars. What makes your company truly stand out, not only form your industry peers but from all companies chasing the same investment dollar? That is why you need an Investor Relations Advisor like my extended team at Storyboard Communications and I to help you differentiate your “sweet spot”. My network not only brings with them talent, but also, in addition to skills, the experience that has been in the making spanning careers over the best part of some ~25-years. We pride our depth of skills, diverse experience, commitment and above all, that I am a DOER. Is not only about the numbers. It’s the story behind the numbers and the right tone of emotional engagement-pitch that matters, truly committed engagement.
Traditionally the term, Investor Relations, describes the department within a company devoted to handling inquiries from shareholders and investors, as well as others who might be interested in a company’s stock or financial stability. IR is a young profession by comparison. Historically it developed from within the public relations functions of a company. IR started becoming more dynamic with the advent of the Internet over the past twenty years making the sharing of information more readily accessible and placing emphasis on interpreting vast amounts of information.
Investors are an important factor in any company’s growth and success. That is why fostering and maintaining strong, transparent, and productive relationships with and between investors and stakeholders are so important. I provide and engage with high-quality investor relations and communications services for exchange-listed and private companies in all sectors through Storyboard Communications Corporation
IR is not only about posting results and presentations on performance and strategic developments on a company’s website under a separate tab, labelled, “Investor Relations”. It’s far greater than that. Posting and sharing of information is only one small aspect of the entire IR approach, it’s merely a method to communicate and share.
IR has evolved into a recognized profession and to be successful, professionals normally have many year’s of diverse capital market experience combined with acumen that allows the professional to think strategically, quantifying the messaging between company and its investors and stakeholder; and the investment community and the company’s management. The ability to articulate. Identifying the sweet spot where “growth” and “credit metrics” intersect to reflect adequately on future returns.
As within finance, where the concept of fractional CFO has developed in recent years, that same concept extends to developing and offering specific IR services to companies on a fee-for-service basis. Such services are effective as the same outcomes can be achieved but at a much lower cost to the company. Developing internal IR teams is costly and requires a commitment to adequate resourcing. IR professionals help management to focus on the business whilst operating alongside senior management in order to capture the right messaging through engagement. IR advisory services can further be tailored to meet the company’s needs on a scalable basis.
Most exciting about IR is the fact that there is no real “cookie cutter” approach. There is no one single professional qualification, that qualifies one as an IR professional. It’s a very unique combination of many years of experience in capital markets, economic analysis, risk management, finance, strategic planning, strategy implementation, communication, understanding of economics, the ability to scale, the ability to digest large volumes of information, resourcefulness, strong problem-solving acumen, communication skills, ability to gather the right information and providing directive and timely support. Take all this together and packaging it into developing robust and effective IR Programs leveraging unique methodologies.
The IR professional is a strategic conduit for information and communication that brings multiple long-term benefits to an organization.