Over time, all management teams want to build relationships, or at least a healthy rapport, with shareholders. Consistent execution of your business plan and proper communication with current and potential shareholders can help you build credibility, which in turn can bolster your company’s valuation and even allow your management team to earn “the benefit of the doubt” when things are not easy.
Last month, we looked at the top 10 ways companies can build credibility with shareholders. This month, we consider the opposite, and explore common ways companies get into hot water. Here are the top 10 credibility busters you want to work hard to avoid.
Legendary “60 Minutes” reporter Mike Wallace once said: “If there’s anything that’s important to a reporter, it is integrity. It is credibility.” The same should be true for every management team. Credibility with The Street – both on the buy side and the sell side – is an extremely important element in a successful investor relations program. In this month’s Top 10 list, we offer simple practices that help build and maintain corporate credibility.
- First and Foremost: Under-promise and over-deliver.
- Make sure your message and metrics are consistent.
- Provide the appropriate level of financial transparency. Continue Reading
Westwicke has been partnering with public companies for over seven years, and in that time we’ve helped companies effectively communicate to the Street.
We’ve compiled a list of best practices to engage in when it comes to your investor relations strategy.
- Cover both the good and the bad. It is easy to highlight the positive news and trends impacting your company and to gloss over the negatives. The best companies do a great job providing balanced information.
- Stay visible. After reporting a mixed quarter, it is important to maintain a dialog with your shareholders. Investors want to be reassured by the senior management that you are on top of managing the company.
- Adapt. Recognize that the metrics you provide to the Street need to evolve to best demonstrate the health of your business and to allow the investment community to gauge your progress. Continue Reading