Enhancing investor relations
The financial market is ultimately a source of capital – the corporate lifeblood. Capital is gained from a range of investors, with whom a company needs to secure solid and good relations. Poor relations with or vague messages to this group of stakeholders may put capital at risk. Increasingly frequently, companies and the financial market have different interpretations which result in unnecessary losses or market fluctuations.
The financial market is also highly regulated with policy makers constantly monitoring its operations. This adds to the need for appropriate relations with a broad range of stakeholders, beyond just investors. When Kreab advises clients on issues, it brings together financial and public affairs communications, including IPOs, deals requiring authority clearance or investments in publicly funded projects.
A hostile transaction is generally defined as one that does not have the support of the management or board. We advise management on corporate defence strategies and help fight off unfriendly overtures.
Reporting on a company’s financial situation is essential in maintaining or building a solid relationship with the company’s shareholders and the financial market. Developing reports, drafting financial messages, navigating strict regulations and explaining complex figures in a clear way is what we do.
Investor relations is a vital task for every management group. A long-term perspective and consistency are essential elements in communicating with financial markets. We help clients establish relations with crucial groups such as investors, analysts, regulators and the financial media, and implement road shows.
Preparing a company for a public listing is largely a matter of building an IR infrastructure including rules, codes and governance issues. New public companies face immediate scrutiny. Building shareholder value as a public company or with a new owner starts with good communications and a compelling corporate story.
An M&A process exposes a company to immense challenges. We regularly advise clients on corporate story development, relation-building activities with stakeholders, decision makers and media, while conducting extensive risk analysis including a communications due diligence. Identifying the true market sentiment is key to a successful deal.
We understand the challenges faced by private equity firms and have helped many of them manage communications related to their own corporate reputation and proposed deals. We assist them in identifying sensitive issues and understanding market sentiments by, for example, providing a diagnosis of the market and of political risks.
Acquiring a publicly owned company requires patience, tact and skill. The level of prestige involved can be massive, risking a harsh and protracted media campaign if not managed correctly. We have the experience and understanding necessary to manage sensitive political issues such as privatisation processes.