Common mistakes to avoid in IR
Investor Relations (IR) is one of the most important parts of the business. It is because the IR combines all the company departments, i.e., finance, marketing, and communication, to control the flow of information outside the company, which is to the general public, investors, and other stakeholders.
Investors play a key role in the growth of the company. That is why a company needs to maintain a good, transparent, and strong relationship with these investors. IR teams work mainly to deliver information to the investors about the strategic plans, investment plans, and other share related information. The main goal of these investor relations teams or professionals is to enable the company to achieve the optimum share price and provide investors with financial information.
However, there are certain deadly sins that the IR teams can commit during their course of business, and in this blog, we will go through each one of them, so stay tuned and keep reading.
Condescension
IR teams should not be condescending when referring to a piece of information they were not provided or when a shareholder speaks to them about the information they do not understand. It can have a negative impact on the investor relations team. As an IR representative, it is your job to deliver clear information to your investors.
Petulance
When you are putting a value of your company in front of your analyst, make sure you do so based on the performance of the company and the performance of its shares. If you oversell and get caught by your analyst, kindly and professionally point out the discrepancies with supporting evidence. Maintain good relations with your analysts as they may give you a heads up before the report goes out in the market.
Enigmata
Suppose your reporting is not clear to your investors and other stakeholders. In that case, you are unlikely to get coverage from the sell-side and any investment from the buy-side. If your financial reporting is indecipherable, you will not gain the trust of your investors. Instead, it is good to provide your investors with a clear reporting and long-term plan with measurable milestones.
Indiscretion
There are many times IR professionals are asked to reveal undisclosed information to them. But the real irony is that the person sitting on the other end is asking you the question only to test you if you are spilling the beans or not. If you are, you are compromising the integrity of your IR department and the company’s position. You will look extremely unprofessional, and investors will be very less likely to trust you with important information. They probably will not even invest in you.
Conclusion
We are an award-winning IR and PR firm. We believe that every business needs the right kind of IR teams. However, by outsourcing the job to us, you will not only improve your relations with your investors, but you will also be able to enhance your share value by getting strategic IR plans that go well with your company’s overall goals. If you wish to know more, do not hesitate to contact us.
Patricia Baronowski-Schneider
President
Pristine Advisers
Tel: 631-756-2486 | Fax: 646-933-0177
E-mail: pbaronowski@pristineadvisers.com
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