Tag: investor relations

Food for Thought: Why Do Private Companies Need IR, Too?

With an increasing number of emerging private equity trading platforms worldwide, it has become obvious that professional investor relations is not just for publicly listed companies. Even though transparency requirements for private companies are still much lower than those for listed companies, there are challenges ahead. While previously targeting a relatively small group of specialized private equity investors, private companies are now facing a very heterogenous audience of private (and, often times, anonymous) investors with very little knowledge about specific industy sectors and business models. Germany´s latest private equity market place, fianc, was launched earlier this week and follows the route of established players in the U.S. like SecondMarket and SharesPost.

It remains to be seen whether the new private equity trading platforms will eventually trigger more stricter regulatory and communication requirements – which, in turn, could mean that being a private company loses its charm. On the other hand, it is an excellent opportunity for private companies to broaden their shareholder base and attract additional capital. According to IR Magazine´s newsletter Inside Investor Relations, some analysts have started to focus entirely on this new market segment. That said, it is obvious that private companies need to re-think and adapt their communication strategies and resources if they want to position themselves successfully on the new trading platforms. Feel free to contact us if you need advice on trading your company´s shares on the private market.

Food for Thought: Navigating A Changing Investor Relations Landscape in the Healthcare Sector

Even though professional principles in investor relations do apply to all industries, IR executives face important sector-specific developments and challenges. A recent whitepaper by Bloomberg and IR Magazine summarizes a roundtable held with IR professionals, buy-side and sell-side analysts in the healthcare sector.

Characterized by inherent long-term business strategies and goals, the healthcare industry faces increasing pressure from short-term oriented imvestors. At the same time, shortened investment horizons and the risk of high volatility requires IR professionals to have access to the same high-standard data analysis and monitoring tools as their buy- and sell-side counterparts. How to manage the conundrum of short-term trading and long-term business goals (and long-term oriented investors)? The challenge is to provide strong arguments and perspectives without over-selling the stock or ignoring rumors on the market. “Framing the issues and providing the necessary positioning to educate analysts and investors about the stock”, as the authors put it, remains the key to successful IR in the healthcare sector. Sounds a little bit too vague? Read further details in the whitepaper “A Healthy Debate: Navigating A Changing Investor Relations Landscape in the Healthcare Sector”!