Preparing well for meetings with investors seems axiomatic. But if the work becomes sidetracked, arriving unprepared to ask for capital won't be forgiven, or forgotten.
Two things will avoid that fatal error of not preparing thoroughly for investor meetings, and will help with working through the maze of preparatory decisions:
- Put in place an infallible advance reminder system, and,
- Use the following checklist to get properly prepared
Define the Purpose
These questions need to be asked right at the start of planning:
- What does the company want/need in terms of growth capital and how will it be employed? Easy questions, but difficult to answer from the perspective of an investment banker.
- What else does the company hope to achieve with these investor meetings, short and long-term? Example: terms for the capital -- interest rate, repayment terms, covenants, equity for cash?
- Does the company have a story to tell that will interest these investors? If not, stop planning right now until there is a solid, compelling story.
Establish Criteria & Logistics
- Make sure the company has identified the right investment people in the right firms to approach for growth capital.
- Set up a working schedule: times, dates, locations, contacts, suppliers
- Make any necessary travel arrangements
- Identify *presenter/speaker (usually the CEO) and other company attendees
- Decide on presentation format, time allotted, invitees, question period
- Set up or update database of investor contacts: names, phones, e-mails, faxes, addresses
- Assess the number of investor kits needed (and media kits if required)
- Where possible, try to arrange one-on-one follow-up meetings
- Arrange to record the questions asked, and answers given
- Designate who will provide follow-up information
Presentation Development
- Review the company’s investor story: what is the company’s ‘Investable Idea’, that is, what are the company’s most compelling reasons why investors should choose to put capital to work in the company
- Develop or update presentation content and speaking points, as required
- Develop potential Questions and Answers: Anticipate questions that investors are most likely to ask, and prepare sound and brief answers
- Decide on the presentation media needed: laptop, projector, overhead, paper (these will vary firm-to-firm)
*Presenter/Speaker Support
- Update *presenter/speaker notes/script with the latest corporate data
- Check equipment, and check it again
- *Presenter/Speaker preference – who will operate equipment (presenter/speaker or aid?)
- Technical support – technician on hand or on standby in case of break down?
Investor Kit - Contents
- Handout version of presentation
- Fact sheet/corporate profile
- Latest financials (year-end and quarterly reports)
- Annual report
- Biographies of CEO & CFO; other key players as relevant
- Business cards of CEO & CFO and other key players
- Brief summaries of and references to relevant press releases and media coverage
- Brochures of relevant products/services
Rehearsal
- Arrange for rehearsal: where - when – who
- Focus on speaking points
- Rehearse potential Q&A's
Staging (for large group presentations)
- Coordinate with the venue contact(s)
- Arrange and confirm lighting, sound, podium, projector
- Ensure information kits are delivered to the meeting room
- Arrange to register attendees and to add the names to the investor database
- Arrange for staff to distribute kits to attendees
- Designate a person to introduce the speaker
- Script the introduction of the speaker
- Arrange for name badges for the speaker and other company representatives
Follow-up
- Always do a post-mortem on each meeting, small or large
-what went well,
-what didn’t go well and why,
-what else was learned,
-what goals were achieved,
-which goals weren’t and why.
- Send ‘Thank You’ notes or e-mails to those contacted at each firm visited: the CEO sends a personal letter to the prime host contact at each firm; CFO or IRO send/sign the rest
- Make certain attendees' contact details are added to the company’s investor database
- Arrange for a follow-up survey of attendees to identify outstanding issues and any concerns the company needs to address.
*(The term ‘Presenter’ applies to small-groups, such as one-firm meetings. The term ‘Speaker’ is used to refer to larger groups, such as public speeches, and multi-firm luncheons for brokers and analysts which the company would use to attempt to raise its public profile more widely.)
The copyright of the article Planning Guide for Investor Meetings in Investment Banking is owned by Jim Osborne. Permission to republish Planning Guide for Investor Meetings in print or online must be granted by the author in writing.
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