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CAPITAL MARKET COMMUNICATION:

WE PREPARE YOU FOR YOUR IPO

An IPO is a transformative process for a company, and it definitively changes the lives of the executive along with the employees involved.

Throughout the IPO journey, senior management’s focus should be not only on going public but also on being public. Being properly prepared can lead to a successful IPO outcome.

In general, financial transactions offers complex communication challenges..

HEAR-ir can assist you since day 1 having the right tools and a strong track record in some of Italian and European interesting transactions, equity issues and stock exchange listings.

Companies looking to access the public markets often view communications as the key element and outcome of the listing day itself. In reality, potential investors, key media and other stakeholders start to pay attention to a potential listing well before the stock begins trading…

Credibility is king

When the time for listing comes, the first real focal point for the stakeholders is the filing of the Notes – Prospetto Informativo – to Consob (the Italian watchdog). In reading this filing, the public gains a new level of insight into the company’s business model, risk factors, compensation and governance practices, and, of course, financials. Many will make judgments before the company ever has an opportunity to begin its IPO roadshow – much less test its strategy in open trading. In this challenging market environment – one in which investors are just beginning to regain their footing – credibility is everything.

Companies must develop and articulate a strong story that clearly explains why investors should believe in the company, its management and its future prospects. So that developing effective messages to drive communications throughout the IPO process becomes essential.

 

Today’s investors have placed a renewed emphasis on a company’s proven ability to deliver solid performance and the focus on the company’s track record is key.

In the current climate where investors are being cautious about where to make their investments, companies can differentiate themselves by demonstrating consistent revenue generation and profitability, as well as balance sheet strength and liquidity. They must be thoughtful about how they explain their long-term investment proposition and their proven ability to execute against their business strategies to achieve strong results over the long term.

 

Address and alleviate all concerns

As a rule, your company should assume that investors may take into account any potential risk factors and you should therefore be prepared to alleviate all these. Key risks could include over-dependencies on certain managers or products, exposure to industries and markets particularly hard-hit in the downturn, or corporate governance concerns such as Board composition or perceived independence. For instance, highlighting the diverse experience of key managers and Board members can be particularly effective in gaining investors’ confidence.

 

Your specific value proposition

Try to tell a unique story – one that focuses on Who you are, What you do, Where you want to go.

You have to highlight what is unique, but be prepared, what was acceptable in an era of “easy money”, is not longer appreciated today: investors are more cautious. Companies must explore the complexities of what makes their businesses successful and what differentiates them from their peers and make sure the unique aspects of your story are easily identified and understood.

 

After the listing..

Prior to listing, a company must create a strong strategy and a robust guidance; any inconsistencies between the information provided during the roadshow and that given during the first earnings announcement will call into question both the company’s actual performance and the management team’s ability.

Make sure your financial projections are sufficiently haircut ..

To be successful as a public company and create value over the long term, you’ll need to continually meet or exceed expectations. Set yourself up to beat numbers and raise guidance for several quarters after your IPO by keeping a lid on expectations.

Furthermore, don’t forget how to use the IPO’s proceeds.  In today’s tough environment, investors’ scrutiny continues and improves: they prefer to see profits reinvested in the newly-public company to bolster its go-forward potential; they need to see strong potential and return on the investment made.

We will be at your side in every step of a new life, pre and after the IPO.

And our role primarily encompasses:
  1. Advise and execute IPO communication strategy - announcements, Q&A, key messages, prospectus, investor presentations, internal memos
  2. Handle full coordination with advisers, distribution, logistics
  3. Work closely with in-house PR team on media relations and manage the media to support the valuation
  4. Organize the brand new IR section of the company web-site, in line with the best-practice and the most advanced technological criteria
  5. Perform the company equity story, if required
  6. Work closely with the top management and the financial-accounting teams to be constantly aligned on key messages and on the full steps of the process;
  7. Brief and train key spokespeople also in the aftermarket
  8. Identify any reputational risk and potential communications issues
  9. Manage non-syndicate sell-side analysts, if required.

Be prepared to devote lots of time to Investor Relations

YOUR M&A ACTIVITIES

At HEAR-ir, we have a broad understanding in the identification and analysis of M&A and investment opportunities.

Picking up the pace of M&A requires big changes in a company’s processes and organization—even if the deals are small. Most of the times, when executives try to manage more and different kinds of deals simultaneously, productivity may suffer as they struggle to get the underlying process right. Most companies, we have found, are not prepared for the intense work of completing many deals at the same time or a big one—and fumbling with the process can jeopardize the very growth companies seek. Be aware that even companies with established deal-making capabilities may have to adjust them to play in this new game.

Completing deals at the expected pace just can’t happen without an efficient end-to-end process.

Eyes on the “strategic” prize - One of the most often overlooked, though seemingly obvious, elements of an effective M&A program is ensuring that every deal supports the corporate strategy.

Top Managers must understand not only which types of deals they desire, but also which types they know how to execute.
And don’t forget: making a large number of deals requires a real investment in resources!

AT HEAR-IR, WE CAN HELP YOU BOTH IN THE FULL M&A PROCESS AND THE WAY YOU HAVE AND WANT TO COMMUNICATE IT TO THE MARKET.

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