Redefining an Investor Base
Our client’s stock price was languishing because of an undesirable mix of fast growing businesses and a legacy of no-growth operations that were unattractive to potential shareholders. Management’s solution was to redefine its investor base by spinning its growth business into a separate publicly traded company.
Boldsquare’s role was developing the strategy for communicating the transaction rationale, as well as developing an essential ongoing program of updating Wall Street. We crafted the IPO messaging for both external and internal audiences; formed a liaison with investment bankers and managed the IPO roadshow process. Once public, Boldsquare was there to build a formal IR function, coach senior leadership, and ultimately expand sell-side research coverage.
As the result of Boldsquare’s programs, the company delivered outsized returns to shareholders by communicating a clear and compelling growth story. Growth investors flocked to the stock, transforming the company’s investor base and raising its profile on Wall Street to new heights.
Creating an Investor Relations Program
While the initial public offering had gone well for our client, the company greatly underestimated the amount of work required to keep up with the investment community’s constant demand for information. Disclosure concerns and lack of planning drove leadership’s recognition that it needed to create a formal Investor Relations program.
Boldsquare created an investor relations program that fit both the current needs of the company, as well as its strategic three-year plan for future needs. Working with the CEO, CFO and General Counsel, we put together a detailed program that included IR policies and procedures, workflow processes around quarterly disclosures, the identification and vetting of service providers and other critical fundamentals. Goals were established and an investment community outreach plan and calendar, including roadshows and conferences, was created that aligned with other critical company events and milestones.
Recognizing and appreciating the consistency and efficiency of the IR program, the company’s management and board of directors gained new confidence from a disclosure and process standpoint. The program ensured a much more comprehensive understanding of the commercial imperatives of the business among investors, leading to deeper engagement beyond quarterly earnings cycles.