In-Person Investor Days are More Important Than Ever
Tips for Building Relationships and Enhancing Valuations
Especially with so many non-deal roadshows being virtual these days, offering little opportunity for investors to shake hands, look management in their eyes and see their body language, in-person investor days have taken on a new importance.
If you have conducted, helped plan, or spoken at an investor day, you already know that to be successful it takes strict attention to details (and there are lots of them), along with solid, compelling messaging and a receptive audience. But the rewards can be ample, ranging from strengthened investor and analyst relationships to enhanced valuation.
Having arranged and participated in dozens of investor days over the years, my colleagues and I have learned a lot to ensure success and meet issuers’ objectives. Following some points to consider:
- Overwhelmingly, mid-town Manhattan is the preferred location to drive the largest attendance and for audience convenience. Many analysts and investors already reside there, and those who don’t, can always find other business to do while in town. A caveat: If your business has an impressive facility worth showcasing, consider hosting your event there, provided it’s easily accessible and attendee expectations are managed appropriately. Alternatively, you can leverage 3D video/VR during a New York-based event, where attendees can undergo a fully immersive experience of your facility.
- Lock in your venue early – even a year ahead if possible – to ensure you get the location of your choice. Nasdaq and the New York Stock Exchange, both preferred venues for many reasons, have great facilities and top-notch meeting coordinators, but they book up quickly, especially if you want to combine the event with a bell ringing ceremony. Hotels or dedicated meeting venues also can be good choices for hosting an investor day, but they are generally quite expensive and also book up early. Once the venue is locked in, the majority of the actual planning work generally occurs in the six months leading up to the event.
- The messaging is the star of the show. You can give attendees goodies, a beautiful room and, of course, great food, but if your messages don’t resonate with the audience, the event will likely be a bust. You’ll need to spend a good deal of time thinking about what you want to say and how you want to say it. And make sure your slides are provocative and easy to read and digest. You’ll also need to spend time prepping management for the Q&A. Presentation training to ensure proper delivery also helps.
- Utilize executives who can effectively demonstrate the company’s deep bench and exceptional knowledge. Consider mixing up the format to include formal addresses, along with fireside chats, outside guest speakers (customers, academia, or other industry experts), and video to help break up the day and provide additional insight into your business and industry.
- Build Q&A time throughout the agenda, not just at the end of the day. Generally, being available for Q&A after every few presentations are made will help the day run smoothly and will allow for more attention to the topics just discussed. The end of the day can be reserved for overview and any unanswered questions.
- Keep your event to a half-day. Attention spans and investors’ time are limited. Lunch leading up to the event, or a cocktail reception at the end is a great way to network and spend a bit more personal time with attendees.
- Plan thoroughly. In addition to fees related to the venue, if your team is not New York-based you’ll need to arrange flights and accommodations, not to mention meals and other incidentals. Using an outside consultant (hopefully with the experience and credentials as PondelWilkinson), to plan and coordinate the entire event, including the messaging, eliminates lots of headaches.
- Last but not least, make sure to follow up with attendees. It is essential to garner feedback on the event, as well as the messaging. If something did not land quite right, you can adjust your messaging for the next time.
Virtual NDRs may have gained popularity because of their convenience and flexibility, but there’s an undeniable value to meeting in person that only a formal investor day can provide. In-person events foster deeper relationships and trust between executives and investors, create more impactful interactions and valuable networking opportunities, as well as provide an opportunity to let analysts and investors know there is a great team behind the CEO and CFO.
Laurie Berman, lberman@pondel.com