The investor presentation is one of the most important tools in the investor relations arsenal. Here are five tips to help ensure that your company has an effective and compelling presentation:
Provide information that investors can’t get anywhere else There are lots of sources for information on your company: Bloomberg, FactSet, Thomson Reuters, SNL, etc. Don’t use the limited time you have for your presentation to provide the same data that investors can get from multiple sources. Instead, use your presentation to give investors what they can’t get other places – your story. What makes you different? What is your vision? What are your growth strategies? Where will your company be in 3 to 5 years?
Don’t focus too much on the past Investors buy stocks because of what they think companies will do in the future, not because of what they have done in the past. Give them a good sense of what you think the future will look like.
Focus on areas of differentiation A lot of investor conferences are industry-specific, meaning that there will be dozens of other companies there with similar industry dynamics, business models, etc. In order to stand out from the crowd, you need to emphasize your areas of differentiation. If you can carve out an identity for yourself, you are way ahead of the game from an IR perspective.
Be an expert on your markets One way to really distinguish yourself is to be on expert on your markets. Publicly available data is helpful for analysts and investors, but you are really just a conduit for that information from the agencies or firms that publish it. When you can provide your own perspective on the trends driving your markets – be it through quantitative data or just anecdotal information – it can make a very positive impression on investors.
Provide a data point to support every statement By their nature, analysts and investors respond to numbers. It’s something tangible that they can get their arms around. Try not to make generic statements about your strategies or tactics that lack any supporting data points. For example, if a company just says they are focused on cross-selling, it tends to go in one ear and out the other. But if the company says they are focused on cross selling and provides a data point to support that statement – like how much products per customer have increased over the past two years – that’s something that analysts and investors take seriously. When you use data to support your statements, it’s much more likely to influence how an investor views the credibility of those statements and lead them to believe that your growth strategies will be successful.