Investor Relations

8INVESTOR RELATIONSPre-IPOPost-IPO (‘‘aftermarket’’)Preparationof the IPOIPOFirst earningsannouncementFirst annual generalmeeting ofshareholdersStabilizationPhase 1Phase 2 Phase 3 Phase 4Figure 1.3 The Four Phases of Investor Relations in an IPOPreparationof the IPOImprove information and reporting systems to delivertrustworthy and meaningful financial informationGet employees familiar with what is at stake in the IPOBuild the “going-public” team leveraging internal resourcesand hiring outside expertsRun blind tests: earnings announcements, strategicpresentations, press conference, etc.Organize media and Investor Relations training formanagementPut processes in place to ensure consistency across allcorporate messagesStart building in-house Investor Relations capabilitiesPhase 1 Phase 2 Phase 3 Phase 4Figure 1.4 Preparation of the IPO (Phase 1)structure in order and validate its going-public strategy. This preparationwork involves the following: Take control. Brokers have their own agenda. So it is vital thatyou don’t give them exclusive control of the IPO process, and certainly notas far as Investor Relations are concerned. Begin early to bring information systems up to speed (see chapter 2,section 2.4). This means getting comfortable with the rhythm of quarterlyand annual reporting requirements, their content, and costs. Reporting andmanagement tools must be able to deliver exhaustive, reliable, and relevantdata, within the timeframe imposed by regulations. This phase is all toooften taken lightly, or in some cases ignored altogether by IPO candidates.But the fact is that if information systems are not reliable and set up intime, management is unlikely to establish its credibility over time. This alsoimplies that management has made sure that it has two to three year minimumof audited financial statements available before starting the IPO process.All in all, it is highly recommended to make sure that internal processes