Given the recent market volatility, we thought we'd send a quick note to remind our network that it's important to remain active in your investor relations efforts, even when it may feel like it's not the right time to do so.
Currently, investors have mixed feelings about the market. We’ve seen a rally over the last few days which could be the start of the recovery, or just a bear market rally. Regardless, investors continue to have large amounts of cash on the side lines, and are looking for the right signals to re invest.
Where there is volatility, there is opportunity. This is precisely the time to be getting in front of investors, telling your story and demonstrating confidence in your business, despite what the voting machine of the short term market may be saying.
Irwin is a great solution to help you do this. By using differentiated data and innovative features to effectively target the right investors that align with your company's life cycle, size, growth prospects, leverage and valuation, you have the ability to control your company's cost of capital and grow your business.
Here are a few brief reminders as you think about your strategy over the next few months:
Most investors view volatility as an opportunity, not a risk: One of the great characteristics of the stock market is the opportunities created by volatility. Public market investors know this well and will be taking advantage, so make sure that you're top of mind.
Transparency is key: Maintaining an open dialogue with current and prospective investors helps build relationships and confidence in your business. No business is perfect, so be transparent about the risks and weaknesses of your business to build trust and rapport.
Step outside your comfort zone: Executing an effective IR strategy isn't always a linear process. Don't be afraid to go places and employ strategies that others don't - this is what can help you stand out amongst the investing universe. In closing, at some point cash will return to the markets again and prices will rise. Those companies that best communicate and manage relationships with their current and prospective shareholders during challenging times will come back faster and higher than their peers who weren't as proactive.
As always, the Irwin Team would be very happy to help guide you along the way. Please reach out if we can be of assistance in any way.