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Is the IPO Market Heating Up? 5 Tips Before Going Public

It’s been quite some time since we’ve seen a robust IPO market. According to Stock Analysis, the best year for IPOs in the last two decades was 2021, with 1,035 new issues. That’s more than twice the next best year (2020) when there were 480. Thus far in 2023, there have been less than 150.

Although the IPO market has cooled considerably, those companies that have braved the public markets over the last few years appear to be doing well, at least according to the only ETF focused exclusively on the IPO market. The Renaissance IPO Index (ticker: IPO), which tracks more than 60 IPOs in their first three years of trading, is up 28.4% year-to-date, outpacing the S&P 500, which is up about 17% this year.

Anecdotally, we’ve been hearing from bankers, lawyers, accountants and other service providers, that the IPO market is poised to heat up in the first half of 2024, and as a result, they are gearing up for a strong (or at least stronger) year ahead. The number of new issues may not reach 2021 levels, but consensus is that we should see more activity than in 2023.

At the same time, there have been several planned IPOs in 2023 that did not make it to market, and general sentiment seems to be that we shouldn’t expect a major spark for the remainder of this year. CNBC recently reported that poor performance for stocks in October and higher-for-longer interest rates are among the reasons many IPO candidates are rethinking or delaying their debuts. As told by Reuters, the CEO of French Automaker, Renault, said that it will not go forward with an IPO for the company’s electric vehicle unit if the valuation is too low. His exact quote was, “We are not crazy.”

While it’s nearly impossible to accurately predict where the IPO market, and the capital markets in general are headed, it’s always a good idea to make sure your company is prepared for when the time is right. If you are a company looking to go public, here are some high-level suggestions to ponder:

  • Ensure that you have a good story to tell. For the most part, growing revenues and profitability will attract investor interest, but you’ll need to put together strong talking points that show what you’ve accomplished thus far, and why those accomplishments will serve you well going forward.
  • Interview several investment banks before you decide on which one, or ones, will represent you in an IPO. Do they have strong institutional coverage, or is their focus on retail investors? Is there an analyst who covers your sector that can pick up coverage of your stock once your deal is complete?
  • Now may not be the right time for your company to test the market. Investment banks have been around for a very, very long time, and most have a fairly good track record on valuing companies. If a bank tells you they don’t think they can get a deal done at the valuation you’re seeking, take stock and mull all options.
  • Make sure you have a strong management team that is knowledgeable and prepared to work around the clock to get a deal done. Multiple SEC filings will have to be made, conversations with attorneys will be plentiful, and roadshows, whether virtual or in-person, will take time, preparation and grit.
  • Surround yourself with experts. In addition to bankers and attorneys, you may want to consider hiring an IR firm, who can help navigate what is a complex process, both during the IPO and after you are publicly traded. Do you have a solid presentation so that your story will resonate with potential investors? Have you gone through presentation and media training? Do you understand Reg FD and the rules and regulations of being a public company?

Going public can be extremely rewarding. It can provide access to capital to help grow your company. It can introduce you to tons of interesting and smart people. It can provide a platform to tell a growing number of people about why your company can make a difference. But, it is not a decision to be entered into lightly, so make sure you examine any consideration that may come up, so that you’re more than ready for the bright lights of public company stardom.

Laurie Berman, lberman@poondel.com and Chris Casacchia, ccasacchia@pondel.com

Top 10 Superpowers for Investor Relations

A few weeks ago, at our staff meeting, someone asked the question, “If you could have any superpower, what would it be?” It was a bit of a tongue-in-cheek exercise, but it got the entire staff thinking that superpowers could definitely be helpful to investor relations executives. 

Invisibility, time-travel and emotional healing (we IR folks often are sounding boards for public company executives) were just a few of the many great, fun ideas presented.

Imagine the possibilities of being able to go unnoticed during investment committee meetings to learn what portfolio managers and analysts are saying about the companies we represent. Or a CEO visiting the future to identify market trends and adjust the business accordingly.

With AI and ChatGPT all the rage, we then took our impromptu brainstorming session one step further. Including some of the comedians on our staff, we came up with ten more “superpower” scenarios that someday may even be possible for use in investor relations:

  1. Instantaneously writing award-winning press releases and smooth-as-silk quarterly conference call scripts, while creating drop-dead-gorgeous investor decks.
  2. Coming up with great, believable reasons for missing guidance. (Akin to the children’s excuse, “It’s not my fault, my dog ate my homework!”)
  3. Filling three contiguous days of back-to-back virtual NDR meetings with avatars who look just like humans and who hurl nothing but glowing compliments at the CEO for a great performance.
  4. Having one of those avatars call the CEO the next day just to congratulate him or her yet again for a wonderful performance.
  5. Preparing proxy proposal language so convincing (and confusing) that it entices institutional investors to vote ‘yes’ for a poison pill proposal at the annual meeting.
  6. “Finding” enough ‘yes’ votes, if needed, to win a vote for a poison pill proposal, just in case the institutional investors were smart enough to figure out the confusing language.
  7. Securing a positive front-page story in the Wall Street Journal (which we have done before) and having the CEO send you a huge Thank You and a very special bottle of wine, but with no bonus. (AI and superhuman powers do not always work fully.)
  8. While rushing around New York on an in-person road show to raise multi millions of dollars, breaking your ankle while stepping out of a taxi on Maiden Lane, and then miraculously, it heals before you even get your driver’s license out of your wallet to show the lobby security officer.
  9. Having dinner at Masa (prix fixe, $750) with an investment banker after a highly successful, long week on the road raising funds, then returning to your hotel room afterward to learn that you just won the biggest lottery ever. 
  10. Calling the investment banker the next morning to say you just resigned from the company, then saying, “I’m outta here!”

In all seriousness, many of us have real superpowers we use daily on behalf of our clients. Quite often, these abilities took decades to perfect, which range from providing sound, creative counsel to developing smart, succinctly written content. And it goes on and on from there.

The world of investor relations is quite complicated, so it’s a good thing that our entire team has the right superpowers to navigate an often challenging and ever-changing landscape, while having a little fun along the way.

Laurie Berman, lberman@pondel.com and Roger Pondel, rpondel@pondel.com

Maximizing Investor Relations Outreach with SEO: Guidelines to Navigate the Digital Landscape

As publicly traded companies strive to expand their outreach and attract potential investors – particularly retail investors – a comprehensive and strategic approach to online presence through SEO (search engine optimization) is increasingly becoming part of the communications mix.

By its simplest definition, SEO is the process of enhancing visibility on search engine results pages for a website or brand through organic (non-paid) means. By optimizing various SEO elements, such as content, keywords, meta tags and backlinks, businesses can improve their online rankings, making it easier for investors and other stakeholders to find relevant information about the company.

An essential aspect of SEO is keyword research. Identifying the right keywords – which are words or phrases frequently searched for by potential investors – allows companies to tailor their content to match those specific queries. By aligning content with relevant keywords, businesses can create informative and investor-focused materials that cater directly to their target audiences.

Institutional and retail investors are more likely today to turn to the Internet first for research before making investment decisions. A robust SEO strategy ensures that a company’s information is readily available and easily accessible to potential investors.

By providing accurate and up-to-date content, and, of course, keeping Reg FD in mind, companies can effectively communicate their financial performance, growth strategies and vision. Moreover, a user-friendly website with well-organized information can foster a positive impression of the company, thus increasing the likelihood of investors exploring further.

A robust, prominent online presence is not only about providing information to existing stockholders but also about attracting new ones. When potential investors search for companies within their investment interests, SEO-optimized websites have a better chance of appearing higher in search results. For example, appearing on the first page of search results establishes credibility, authority and attention, increasing the likelihood of potential investors viewing the company as a reputable investment opportunity.

SEO Techniques

High-quality and informative content is the backbone of any successful SEO strategy. In the context of investor relations, content must be tailored to address the needs and interests of investors. This starts with crafting engaging annual report letters, professionally written press releases and blogs that highlight the company’s achievements and prospects. With the help of an SEO specialist, by integrating relevant keywords strategically into this content, search engines will recognize value and rank it higher in search results.

With the reliance investors place on mobile devices, companies must ensure that their websites are mobile-friendly. A website that is easily navigable on various devices enhances the user experience and attracts broader audiences. Search engines also prioritize mobile-friendly websites, which can positively impact a company’s SEO rankings.

Backlinks, also known as inbound links, are links from other websites that lead back to a company’s website. Search engines perceive backlinks as votes of confidence and authority. When reputable and relevant websites link to a company’s website, it signals to search engines that the content is valuable and reliable. As a result, the website is likely to receive a higher rank in search results, leading to increased visibility among potential investors.

Measuring Success

To gauge the effectiveness of an SEO strategy, companies should monitor relevant key performance indicators. These may include organic website traffic, keyword rankings, bounce rates and conversion rates. By analyzing these metrics, businesses can identify what aspects of their SEO efforts are working well and which areas require improvement.

Garnering attention from prospective investors, be they individuals or institutions, is never easy. A well-executed SEO strategy represents one more tactic to improves a company’s search engine rankings by strengthening its communication channels, which, in turn, lead to more prosperous and sustainable relationships and results.

Diego Lievanos, Digital Content Strategist

Contact investor@pondel.com for more information on deploying SEO for investor relations.

Overcoming Challenges: The Path to Successful ESG Program Implementation

While the adoption of environmental, social and governance (ESG) programs is becoming increasingly important for building a sustainable future, implementing such initiatives does not come without its challenges. Cost, ROI, engagement and clear messaging are just a few of the many factors to consider when it comes to corporate sustainability.

Below are some common concerns with commonsense solutions that may help companies better prepare for ESG deployment.

  • Capital allocation: Investing in and implementing ESG initiatives may require significant financing, which can be a hurdle for some companies, especially smaller organizations with limited resources. Not all ESG programs are costly, however. Starting slow and building a longer-term strategy over 2-3 years is good practice. It could be something simple, such as reducing a company’s carbon footprint by using energy-efficient lighting or adopting a hybrid workplace.
  • Complexity and measurement: Determining the right indicators, collecting reliable data and establishing standardized frameworks can be arduous. Companies can overcome this challenge by leveraging emerging technologies, collaborating with industry peers and engaging with ESG consultants and experts to ensure accurate and transparent reporting.
  • Benchmarking: It is important that organizations perform in a manner to maintain their performance, and at the same time, mitigate risk and capitalize on the potential benefits of sustainable business practices. Falling behind on these initiatives may lead to missed business opportunities. A good rule of thumb is to set realistic, achievable goals aside from regulatory obligations.
  • Stakeholder engagement: Balancing the diverse expectations of multiple audiences can be very demanding. Companies can use existing technologies to set up open communication channels with each of its targeted communities, from employees and investors to customers and suppliers. Social platforms can be used to garner support and to ensure that ESG programs align with stakeholder needs.
  • Integration and alignment: ESG programs often require changes to organizational structures, investment decisions and risk management practices. Since companies are constantly evolving, meaningful ESG practices can slowly and strategically be integrated into existing operations. What’s needed are leadership commitment, employee education and training and clear ESG goals that align with the company’s mission and values.
  • Regulatory environment: Compliance with multiple reporting frameworks and keeping up with varying regulatory and local jurisdictions often can lead to uncertainty. Engaging with policymakers, industry associations and subject matter experts can help companies stay informed and adapt their ESG programs to meet evolving requirements.

Today’s business and social climate are having a trickle-down effect on ESG. Large organizations, for example, are requiring smaller companies to adhere to ESG criteria as part of their global supply chains. Moreover, a growing number of institutional investors will not invest in companies without an ESG program in place.

Lack of standardization, inconsistent data quality and subjectivity are adding to the confusion when it comes to ESG. As a result, Bloomberg predicts more ESG-related shareholder lawsuits this year, which was highlighted in a recent Morgan Lewis webinar.  

Studies suggest that those companies embracing ESG will be competitive leaders and drive long-term value creation. ESG is not as complicated as it may appear. Deploying a program that does good – without breaking the proverbial bank – not only enhances brand reputation, but also will be well received among investors.

George Medici, gmedici@pondel.com

As the New Year Rolls In, So Do the Prognosticators

It probably happens every year, but I cannot recall a time when so many pundits had so many opinions on how the market will perform in 2023. The funniest headline about the market’s near-term future was JP Morgan’s, “The End of the Affair.” It probably was written to catch attention, and in my opinion would have been more appropriate a year ago, referring to the bull market prior to last year’s downturn.

How do you think the market will perform in 2023?

Many of the headlines about the new year are positive and include such language as:

  • “Three Scenarios that Could Surprise Markets (on the upside) in 2023”
  • “Is a Stock Rebound in the Cards?”
  • “Inflation will Crash Much Faster than Expected”
  • “Comeback for Fixed Income”
  • “Economy will Avert Deep Recession”
  • “Fed Pivot Could Push Stocks Up by End of Year”
  • “Second Half of Year will be Up, Up and Away”
  • “S&P will Soar at Least 20%, Nasdaq at Least 30%”
  • “Fed will Pause Rate Hikes Sooner than Everyone Thinks”
  • “The Stock Market will have an Excellent Year”

But there also are naysayers:

  • “Wall Street, Meet Mud”
  • “A Strange Day is Coming to America”
  • “More rate hikes are coming”
  • “Stocks will continue their lows in 2023”
  • “Continued Volatility Ahead”
  • “Markets May Continue to Face Choppiness”
  • “Challenges Abound for Dow”
  • “A Stock Market Crash in 2023”
  • “Millionaires Predict the Market Will Get Much Worse”

With so many divergent views, what’s an investor or issuer to think, or more importantly, to do? Who should be believed?

I just counted the number of bullet points above, and there was one more positive than negative. A good sign, although I am not an analyst and my research was cursory at best. However, the sources are good and professional.

If you really want a forecast for 2023, you could always flip a coin.

Friederike Fabritius and Hans Hagemann wrote in in their book, The Leading Brain: Neuroscience Hacks to Work Smarter, Better, and Happier, that if you’re satisfied or relieved by a decision the coin made for you, then go with it. On the other hand, if the coin toss leaves you uneasy, then go with the other choice instead. “Your ‘gut feeling’ alerted you to the right choice,” they wrote.

So please, flip a coin if you will, but at least think positive thoughts. Good luck, and have a healthy, happy and prosperous new year.

Roger Pondel, rpondel@pondel.com

PondelWilkinson Profiles: Laurie Berman 

PondelWilkinson’s investor relations teams play an important role helping publicly traded companies position themselves to Wall Street. We caught up with Laurie Berman, the firm’s managing director, who shared more about her IR work, personal life and some of the factors that have influenced her career.  

What was your first job?  

My very first job was at a snack bar in a roller-skating rink. Professionally, my first job out of college was working at Institutional Investor magazine in their sponsored conference division.

Laurie Berman, PondelWilkinson’s managing director, pictured with her loving dog, Mishka, as they enjoy the Los Angeles sun.

How long have you been in the industry?  

I’ve been practicing investor relations for almost 30 years (I guess I started when I was still in diapers).

If you had to pick one word to describe what you do, what would it be?  

Fast-paced (that’s one word, right?).

What is your favorite part about your job?  

I love storytelling. It’s so important to be able to find the right words to describe a company and its strategy.

What is your least favorite part about your job?  

Deadlines. Although I work great under pressure, it’s sometimes tough to juggle multiple deadlines at the same time. I’m proud to say I’ve never missed an important one.

What do you like to do for fun?  

I love sports (the spectator kind).  Right now I’m very into football and I am a rabid fan for my NY Giants.  Baseball is also a love of mine, but I switched my allegiance from the NY Mets to the Los Angeles Dodgers when I moved to Los Angeles more than 20 years ago.  I still do root pretty hard the New York teams of my childhood.

What’s the weirdest thing you’ve ever done?  

I allowed a very persistent relative to convince me to go on a date with someone I briefly dated five years before (it didn’t work out at the time). We’ve now been married for almost 26 years, and that relative was a flower girl at my wedding (she was in her 50s at the time).

What’s something that recently made you smile?  

A few months ago, we rescued an 8-year-old dog with vision problems. She makes me smile all of the time because she’s such a goofball.

What’s next on your bucket list?  

Aside from winning the lottery? I’d love to take an extended vacation through Europe.

What’s the best advice you’ve ever heard?  

Not so much advice, but something I try to take to heart. “Comparison is the thief of joy.”

— Shannon Clemons, sclemons@pondel.com

Hitting The Ground Running: An Intern’s Perspective

When I first interviewed for PondelWilkinson’s internship program earlier this summer, I was told that it would be a hands-on and immersive experience. I nodded politely and expressed my interest. I laid out what I had done at school, which I thought made me capable. While I was not completely wrong in my “qualifications,” I learned fast that the real world cannot be taught.

On one of my first days, I was tasked with writing a pitch letter for a client’s new product launch. Easy enough, I did this in class, I thought to myself. So, I found my old professor’s template and went ahead to write an email pitch. I polished it up and sent it along to my supervisor expecting minor feedback. I was not expecting the entire letter to be edited and rewritten. Oh, this is not like school.

As the internship went on, I was tasked with more pitch letters, calls to reporters, and updates for clients. I was not getting the perfect latte ready or organizing file cabinets (although the internship was virtual so that would have been hard to do). I was acting as an associate on client accounts, working behind the scenes.

One element that took some time adjusting was the virtual format. While there are many positives for working remotely, including the flexibility of making my own schedule, there are downsides as well, particularly learning each other’s “schedule” when there is no real office. I am happy to report that the teamwork aspect was not lost. I also got to work alongside my fellow intern where we helped each other on projects and still felt connected, even if she lives in Pennsylvania and I in Maine.

Below are a few tips for new interns on what I found to be successful when transitioning from class to an internship:

Organization. In school I always had a planner where I would write down what I had to do, and then cross it off as it got done. This worked well for my internship, too. I would write down client activities planned for the week and then begin by checking them off once completed. This made me feel productive and helped keep what I was doing organized. What differs from school is there might be urgent items that come in at random times. While school and class have a schedule, the business world does not. What I think I might do during the day could completely change. You must stay on your toes but keep organized while doing so.

Communication. I admit it. I am the student who annoys the professor with emails to make sure I am doing the right thing. I have learned that communication looks a little different in the workplace. A lot of the time management responsibility is left up to me. I must take ownership and trust myself and my work. The good news is there are no grades, and things can always be changed and edited. Communication is still important, but its purpose is to make sure everyone is on the same page.

Work hard, play hard. This is the mantra at my university. Students are expected to produce high quality work, but also relish their college experience. I think this phrase can still be applied to an internship but tweaked just a little. Working hard does not change. I always want to put my best foot forward and exceed expectations. To play hard in an internship, however, means taking a step back and enjoying the experience. I have been able to work with some cool clients who are doing eye-opening things, and also become friends with Lauren O’Neill who was not just “the other intern.”

While an internship is certainly not like school, there are qualities that can be applied to both. I have learned so much more about public relations, even if I have had great classes about it. George was not lying when he said this internship would be immersive, and I am so glad it has been.

Rachel Peterson


Rachel Peterson interned remotely at PondelWilkinson for the firm’s 2022 summer program. She is a student at Wake Forest University studying communication, integrated strategies, and film. When she’s not working or studying, Rachel enjoys going to the beach, watching the sunset, and dancing. After graduation, she hopes to put her skills to use in Vancouver or New York.

Investor Relations in a Bear Market

Every great story deserves an engaged audience.

It’s a philosophy we deeply believe in at PondelWilkinson – So much so it’s splashed across our website banner and written on the back of our business cards.

And it rings true regardless of market conditions, even in bear markets, when the value of equities or other investments dip 20 percent or more from recent highs.

That happened around mid-June on the S&P 500, and while there’s little companies specifically can do to calm market forces, taking a proactive, non-promotional stance is the best course, according to PondelWilkinson CEO Roger Pondel.

“Retreating or staying purposely quiet is not a strategy that works,” he asserts. “Astute investors have their antennae up now, looking for good companies.”

In a bear market, investors go into safer stocks, explains PondelWilkinson Vice President Judy Lin Sfetcu, who adds some historical context to highlight her point.

During the dark months of the financial crisis of 2007 and 2008, when the S&P sank nearly 52%, investors flocked to companies with solid financials and established track records, abandoning companies teetering on insolvency.

“If a company has a good balance sheet, they should be messaging that to investors and Wall Street,” Sfetcu says.

Managing Director Laurie Berman views this bear market more as a reflection of investor sentiment, than company specifics, and a recent tally by FactSet provides some data points to back that up.

Through July 22, 2022, 68 percent of S&P companies in Q2 reported a positive EPS surprise, while 65 percent of S&P companies reported a positive revenue surprise.

Granted it was a small sample size (21 percent of total company results), but undoubtedly good quarterly metrics by several publicly traded companies.

Yet, as of press time, the S&P was down just over 13 percent for the year. The tech-heavy Nasdaq, down 21 percent this year, closed with the worst six month start on record, losing nearly 30 percent of its value through June, according to Yahoo Finance.

“If a company is being negatively impacted by macro issues, that company should be honest about what that means for its future, and importantly, what steps are being taken to try to insulate it, or use the macro issues to their advantage,” Berman suggests. “Highlighting certain areas that may give investors more confidence can be helpful.”

Analysts and other finance experts contend bear markets typically last between nine months and a year, so settle in for some continued volatility, especially as inflation, pandemic-led labor shortages, related supply chain constraints, and rising interest rates present ongoing challenges.

In the interim, here are a few more dos and don’ts to ponder:

  • Think responsiveness and transparency.
  • Message the company’s strengths: cash flow and balance sheet; client/customer relationships; resilience and history in prior down markets.
  • Message if and how current economic conditions are creating change for the company, positive or negative, including decision-making.
  • Be certain that investors hear regularly from c-suite executives, sometimes more than the CEO and CFO, on conference calls, non-deal roadshows (NDRs) and conference presentations.
  • Court and know key investors and their concerns, not just about your company, but about their portfolios.
  • Give investors reasons to hold your shares, or buy more.
  • Don’t feel defensive about a falling stock price, particularly if the company is still performing well. Investors know the reason.

“Resist the temptation to over-promise about the future,” says Pondel. “Be proactive about reaching out to new investors and participating in NDRs and conferences. They are not a waste of time, even in a bear market.”

Consider this blog entry a primer to a larger discussion on investor sentiment, a key topic we’re aiming to further develop into a whitepaper this fall, with insightful take-aways to help public companies improve communication and messaging during volatile times.

Chris Casacchia, ccasacchia@pondel.com

How PR Can Support Micro Cap and Small Cap Companies

How-PR-Can-Support-MicroCap-and-SmallCap-Companies-Roger-Pondel-and-Shelly-Kraft-article-MCR-Q2-2022

Market Volatility Got You Stressed? Try Laughing … And That’s No Joke

Remember Henny Youngman? He was an American comedian, famous for his mastery of the one-liner, whose best-known quip was “Take my wife … please.”

Here’s another one-liner, not Youngman’s, but not bad, at a time when so many investors these days recalibrate their portfolios: My trusted wealth manager just started working on a retirement plan. He doesn’t know it yet, but unfortunately, it is his!

While having a good sense of humor can’t cure all ailments or make the stock market go up, a good laugh during stressful times can do positive things.

Take my wife, Fay, please. No! I mean listen to my wife, Fay, a psychotherapist who knows a thing or two about laughter and the positive things it can do.

“Laughing has great short-term effects on one’s mood, as well as on one’s body,” Fay told me over dinner the other night, on the day that the Dow dove more than 1,100 points. “Laughter stimulates the heart and lungs and increases endorphins. It decreases blood pressure, creates relaxed feelings and even improves the immune system.”

Thank you, Fay. While the stock market these days is no joke, there are many jokes to be found about it. These below may not be quite as funny as Youngman’s one-liners, and certainly rank very high on the cheesy factor, but hopefully will ease a little tension among those that follow the market as we all plow through these tenuous times:

  • How do you find a small-cap fund manager? You find a large-cap fund manager … and wait.
  • Enduring the current stock market decline is worse than a divorce. You lose half your money, but your spouse is still around.
  • Why are nudists bad for stocks? They are associated with bare markets.
  • I figured out the secret of how to make a million bucks in the stock market. Invest $2 million.
  • Recently, I started to invest heavily in penny stocks. It seemed to make a lot of cents.
  • My friend is smart, honorable, and exudes old-school charm and chivalry, but he hates the stock market. When I asked him why, he said, “Gentlemen prefer bonds.”
  • Why was a stock trader recently electrocuted? He shorted Tesla.
  • In the stock market today, Procter & Gamble, maker of Charmin tissue, touched a new bottom, and millions of investors were wiped clean

Gallup’s 2022 Economy and Personal Finance Survey, conducted in April, found that 58 percent of all Americans own stock. With the market declines we have been experiencing lately, that’s no laughing matter. But it does pay to laugh, at least a little.

Roger Pondel, rpondel@pondel.com