With so many Investor Relations (IR) firms available, it can be challenging to meet, evaluate, compare, scope work, and negotiate engagements with them. More challenging yet is that many companies wait until they are in crisis mode before they reach out to IR professionals for assistance.
Davos in the Desert’s Meet & Greet Forum allows company representatives to listen to IR firms introduce their firms and teams, as well as present their areas of expertise, case studies, fee structures, and more. Listeners will have the ability to ask leading IR firms questions about their industries of focus, investor lists, modes of communication, and more.
Essentially, Investor Relations firms are tasked with managing the relations between their clients and the investment community. Good IR firms understand the nuances in communicating with different investor constituents such as institutional investors (there are differences between hedge funds and pension funds), retail investors, and the media.
IR firms must manage investor expectations as well as maintain consistent messaging across a variety of media such as conference calls, press releases, investor conferences, and analyst days. IR professionals must do all of this while remaining in compliance with a range of regulations spanning quiet periods, full disclosure, and timely disclosure.
Often, IR agencies’ responsibilities extend to managing relationships with regulators, the media, employees, and other key stakeholders. They must keep abreast of a growing array of analytical databases, outreach channels, sentiment measurement mechanisms, and tools for capturing investor feedback.
IR professionals are also first responders. They must be prepared to respond to a wide range of potential crises. Message crafting, appointing appropriate spokespeople, and settling on dissemination channels must be quickly implemented.
The following are among the facets that you may learn about presenting IR firms:
- History of the firm
- Composition of the team
- Areas of expertise
- Range of services
- Robustness of relationships
- Modes of communication with the investment community
- Anatomy of agreements
- Scope of work
- Fees
- Termination triggers
The following are among the questions company executives may wish to pose to Investor Relations firms they are considering retaining:
- To what extent do you use social media?
- Do you arrange live investor meetings?
- Do you prepare C-Suite executives for conference calls? Do you manage conference calls?
- Where does the line of demarcation exist between your IR firm and accountants in terms of articulating recent financial performance?
- How well does your IR company work with accounting firms? Securities lawyers? Public relations firms? Crisis management experts?
- What kinds of databases and other tools does your IR firm subscribe to that yield your firm competitive advantages?
- Which campaigns are you most proud of?
- How accessible are account managers during times of crisis?
Please check back for the agenda of presenting Investor Relations firms. If you would like to nominate an Investor Relations firm to present, please contact tabitha@davosinthedesert.us .
The primary benefit of listening to the presenting Investor Relations firms is that you will be able to conduct a far more thorough and expedient search for the most suitable IR firm. You will gain insight into the demeanor, professionalism, and approachability of presenting IR executives. You will learn about the range of services IR firms offer, set expectations, structure agreements, and manage productive relationships.