Investor Relations

48INVESTOR RELATIONSinquiries from investors, retail shareholders or analysts. The portion of theactivity outsourced will be determined notably by organizational structure,the internal resources available, and stock-market performance. Outsourcingis often used for the logistics of Investor Relations, publishing, shareholderidentification, and perception audits. Target investors and organize roadshows. Unlike investmentbanks and brokers, service providers do not receive a percentage of thetransactions generated by the events organized. This will limit the temptationto set up meetings that benefit the provider more than the issuer.Investor Relations firm will assist in investor outreach program by creatingtarget lists, arranging meetings with existing and potential new analysts andinvestors, thus efficiently leveraging management’s time. Gain access to objective advice. Independent experts often havemore experience with a wider range of situations and can thus provide thatmuch-needed “outsider’s point of view.” In many cases, they have successfullyresolved challenges the company is facing for the first time. They canprovide crucial input with regard to Investor Relations strategies, conductingperception studies and targeting new investors. When outside contractors arewell integrated into the company, they can contribute to the quality of communicationson strategy and finances. Benefit from local expertise when engaging in cross-border transactions.Successful Investor Relation professionals are mindful of the cultureand practice of the country where they are operating or raising money.External advisors can also temporarily act as spokespersons for newly listedsmall and medium-sized companies with no in-house Investor Relationsteam yet.Whether your company is considering hiring outside Investor Relationssupport and counseling to prepare and take you through the IPO phase, orwhether you have already been listed for a long time and are looking foran external opinion and extra resources, you will first and foremost have todraft the list of your needs and expectations. For instance, it will be usefulto evaluate the following:Do you need ongoing support with administrative tasks such as pressrelease distribution or Investor Relations infrastructure maintenance, orproject-based assistance?Is gathering market intelligence and investor and analyst perceptionswhat you are interested in?Are you looking for sophisticated guidance and counsel on disclosure?In corporate governance? Crisis communications? Shareholder