IR is a specialist form of communication between a company and the investment community, which in turn influences the value of a company. IR ensures that relevant parties are able to achieve a full and accurate understanding of the company’s affairs, including business operations and activities, strategy and future prospects. It also enables both private and institutional investors to make informed decisions on whether to invest in a company.
What is Investor Relations?
Why is Investor Relations important?
Communication influences value
Good investor communication helps drive fair value through:
Economics
Accurately reporting the key numbers
Education
Ensuring the narrative supports the numbers
Awareness
Raising your profile with your stakeholders
IR influences value by attracting new investors and protecting companies from challenging situations
Outcomes from successful IR
- Well understood equity story
- Depth of sell-side coverage
- Reputation for delivering on promises
- Highly rated management team
- Liquidity in trading
- Diversified share register
- Supportive investor base who will back growth ambitions
- Achieving fair valuation
