Even in today’s hyper-connected, technological marketplace, investors still put a premium on face-to-face meetings, making non-deal roadshows (NDRs) a highly effective way for companies to cultivate and maintain investor interest.
Here are five tips to help you get the most out of your NDR, from leveraging valuable executive time through to securing or expanding your investor base.
1. Look Within
Many of your ideal investors may already have smaller holdings in your company. Focusing on holders beyond the traditional “Top 25” allows you to tap into latent buying potential and cultivate the next generation of top holders.
2. Do Your Own Thing
While you’re on the road keep a part of your itinerary for meetings with your own institutional contacts or with financial/trade media outlets, or even with other sell-side firms. Make sure you are able to make yourself available for those spontaneous business moments.
3. Mix It Up
Consider introducing investors to other key executives during these meetings. Doing so will enable investors to gain an appreciation for the depth of the company’s leadership team. And, depending on the executive’s area of expertise, it can also enable you to get in front of niche investors, such as those who incorporate environmental, social and corporate governance criteria into their investment decisions.
Don’t blow it by talking instead of listening. Use this time to understand your investors’ issues and concerns and understand the factors and perceptions that are influencing your valuation.
5. Look Beyond New York
There’s plenty of money in cities outside of New York. Often, Non-New York investors are easier to schedule as they don’t typically get the same level of attention when the NDR itinerary is being managed exclusively by a sell-side research firm. And don’t forget the investors in your own backyard, where your corporate name recognition and management reputation can carry the most weight.
By taking advantage of these tips you’ll be able to get the most ROI from your NDR’s, broadening your investor contact base, gaining a deeper understanding of investor needs and making each interaction count.