Finding the right Investor Relations (IR) firm is no mean feat, and should only be a decision made with all the information. Considering this firm will be your connection with the investment community, you need total trust and confidence in your IR partner.
So, how do you make the right decision? Here are 4 hard questions you need to ask in order to make the right choice.
Does the firm focus on investor relations?
There are a number of firms offering IR as one of their many services. What you need to know is whether IR is their speciality.
There are a number of public relations firms that attach IR to their list of services. And, while the idea of getting PR and IR for the price of one seems appealing, these establishments are not always trained in the art of investor communication.
IR is complex and involves communication, finance, policy and business strategy. In the same way you need a specialist in the medical field, you need a firm that considers IR to be its core offering.
Do they have knowledge of your industry and the investors in your field?
Be cautious of IR firms that claim to have knowledge of your industry, without substantial evidence to back that statement. You should work with a firm specialising in your industry, as they often have established relationships with investors, analysts and bankers in your field.
You want to work with a firm driven by knowledge, and devoting its time to staying ahead of the industry. They should know the market players, and understand the dynamics that your industry faces. Be wary of a firm that spreads itself too thin over multiple facets.
Do they have the staff and infrastructure to provide a full service?
Big firm or small firm? Each has its downfall. Working with large firms may mean you’re just a number, and you lose that personal touch. Working with a small firm, however, can sometimes mean they’re working over capacity, and there’s a bottleneck rendering your IR team unresponsive.
Ensure your IR firm has the structures in place to handle communication, not only with your investors, but with your company too.
Do their past clients represent market leaders?
An IR firm’s client list can reveal a lot about how well it operates, and what results it brings in. Are their past clients companies with questionable status? Or are these thriving businesses you would consider to be your peer group?
Request case studies of former clients. You really cannot make a decision without all the information.
About Equity Alliance
At Equity Alliance, we tell your story to investors who want to hear it.
We dedicate ourselves to working with small-cap companies with unlimited potential, and connecting them with investors looking for new investments to add to their portfolio.
Are you looking for increased awareness, liquidity, trading volume and stock value? Contact us today!