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How to minimise the impact of negative events on your investors

13 Aug, 2018

Good investor relations and communications professionals know that any business can be disrupted by a number of economic and environmental factors including new market entrants, and despite a reasonable value proposition these disruptions can see stock prices languishing at low level. So how do you combat this?

Negative events can have a powerful effect on the overall reputation of a business, and these things will certainly be picked up and recirculated by the press. However it is in these instances that you need a clear plan of action so that you can take steps to reduce the wider impact that this negative event will have on your business. 

Despite every reasonable effort to make careful changes or minimise impacts, some situations can have lingering effects. In these moments it is critical that investor relations professionals can swiftly address and rebuild confidence with their investors and staff. Keeping the negative effects of these reputational issues from damaging the market value of the business, as perceived by investors.

Early communication is key

As with any investor relationship, when negative news is announced, it is important for you to maintain close relations with those institutional investors who were at a tipping point, especially those who you believed would be likely to invest in your business. As well as maintaining healthy positive relationships with loyal investors whom you have already lovingly (expensively) acquired and cultivated.

This can be only be achieved by confidently and efficiently connecting with those investors so that you can provide timely and detailed knowledge of the current situation. This proactive communication ensures that your investment community is fully informed about the state of play of the business and gives you a powerful opportunity to reemphasise value and directly address any burning questions or concerns that they may have.

In these instances, you will have to make decisions quickly and identify who is best placed to respond with a well-coordinated and clear statement, this could be your CEO, Corporate Counsel or your Investor Relations Representative. In most instances you will allocate one person to speak so that you can ensure consistency and clarity when you need it most.

Use technology to add value

The truth is that everything comes down to the quality and clarity of your communications. It is important to both inhouse and agency IROs that every interaction with the investment community is of exceptional quality. Each moment should add value to these high value relationships.

We know that providing a high quality experience for your investors will help you to build trust and strengthen long term relationships so that you can ensure the outcomes that you desire.

There are many ways to reach out to your investors from email through to telephone and face to face. The right technology should help you to:

  • Build investor relationships through frequent touch points
  • Increase investor engagement through tailored communication
  • Spot opportunities for improvement and increase market value

Good technology is at the heart of any successful communication programme and none is more important in moments of crisis than the event conference call.

A professional event conference call allows you to bring together key investors, prospects, analysts, financial advisors and media personnel in to a seamlessly executed meeting to provide information and facilitate important discussions when you need it most.

It is a key tool within any IROs tool set as it allows your business to quickly communicate to the investor community, and address issues in a human way, whilst still providing you with the heightened control that you would not get from a face to face meeting or a video call.

Despite meticulous planning, there is still a high risk that things can still go wrong on the call, last minute attendee changes or external events can have implications that cause calls to be rescheduled or amended. It is in times like these that you need a trusted conference call provider who can provide you with a calm and efficient service that you require.

Optimise Your Next Steps

It is important that you can review and keep a copy of these calls (not only for MiFID II compliance), but reflection will allow you to address any issues and feed any necessary strategic information back into the business, along with wider recommendations for adjustments to the company strategy.

An event call is also a great opportunity for you to analyse the condition of your investor relationships. A well-planned Q&A session often highlights any passionate concerns or questions that you may need to address as part of the wider investor communications programme or business strategy.

Speakserve provides IROs professionally managed (and self-managed) event calls with a list of powerful features that will help you to ensure you can maximise results, maintain relationships and meet compliance requirements.

Our transcription services and HD call recording features enable you to quickly revisit, download, dissect, summarise important comments and share time sensitive information with the CEO or CFO, thus resulting in an extremely efficient and secure way to address concerns, allowing you to maximise the company value in the eyes of the investment community.

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So, how much is your next Investor Relations Call worth to your business?

A well-managed call can be worth billions to the right investor make sure you are using a conference call company that you can trust. Want to find out more about our Professionally Managed Event Call Services

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