Non-Deal Roadshows: Speed Dating for Companies and Investors

Posted by on September 16th, 2015

Now that Labor Day is over and summer is coming to a close, investors are back in the office catching up from their end of summer vacations. That also means investor conferences are back in full swing, with management teams looking to maximize their time while attending/presenting at these events.  One recommendation we typically make to clients is to go on a non-deal roadshow in the city where they are presenting. Non-deal roadshows are an essential part of every IR program as they help management teams build a rapport with investors and sell-side analysts.

To make life easier for you and your client, it is imperative that the appropriate due diligence is done on each investor you are calling prior to scheduling a meeting. Why waste your time calling value investors on a growth story? Doesn’t make sense. You should start by reaching out to current investors to maintain or improve the current relationship. Expanding the shareholder base is definitely a goal, and looking to schedule meetings with investors outside your current holders should absolutely be part of the strategy as well.

Each management team should prepare to “hit the road” to meet with investors for a minimum of 2-4 days per quarter. Depending on management’s schedule, increasing the number of days or going to new cities should be discussed; however, be warned that adding too many days might have investors asking who is home minding the store.

Once the roadshow is completed, it is important to follow up with every investor/analyst with whom management met. The feedback you receive will go a long way toward helping make appropriate changes to the investor deck and can also offer insight into certain changes a management team may need to incorporate into their presenting style.

The sooner you get your clients out on the road, the better. It will allow you to get a firmer handle on the story and help you in pitching to investors going forward.