CANADIAN IR PRACTITIONER PERSPECTIVE

Roadshows can be one of the strongest tools for investor relations and one of the best uses of management, but they take a lot of time and effort. In order for roadshows to be of value, they must be effective – getting you in front of the right people at the right time. To achieve this, the IRO needs a strong relationship and good communication with the people who really run the roadshow – the sales desk.

While IROs have lots of contact with institutional salespeople – who actually sell to clients – it’s also important to have a direct relationship with the individual at the sales desk who is responsible for roadshow logistics. Their goal is to make sure your trip runs as smoothly as possible and you’re happy with the outcome.

This is not to say that salespeople don’t share this concern, but their primary focus is on making transactions – not necessarily putting you in front of the people you want to see. They may recommend meetings with hedge funds that are long or short your company, or with
high-turnover traders.

The process becomes even more important when doing non-deal marketing trips, as salespeople may be less interested since the probability of an immediate commission is lower.

Dealing with the Sales Desk

Sales desk personnel can be your best friends when it comes to roadshows, so ensure that you and communicate with these people frequently – not just with salespeople. As the concierges of the roadshow, there are a number of key areas within their control.

The most basic is the logistics of setting the schedule of meetings, including timing and location considerations. They likely know the city you’re visiting better than you do, and are aware how long it takes to get from one meeting to the next. This can help ensure the roadshow flows smoothly, and you don’t end up in the wrong place or late. They also coordinate printing and delivery of presentations.

Perhaps the greatest added value of a marketing associate involves things that may not be the immediate subject of your focus. In order to maximize exposure during a trip, it’s advisable to schedule meetings with retail offices or other investors. The sales desk can incorporate these times into the schedule, and suggest appropriate venues, such as restaurants.

When planning a roadshow, it’s advantageous to have a target list of firms that you want to meet with in order to get the greatest value from your trip. Look to companies that are investing in your sector, market cap and/or peers. The list should be a mix of firms the company has recently seen and prospects, to keep the roadshow fresh. Ensure that you provide your list to the sales desk, and follow up to ensure that your targets have been contacted. This can help avoid inappropriate meetings that waste executives’ time, and guarantee that you meet with investors beyond the salesperson’s clients.

The sales desk also performs a critical role in providing you with intelligence about the people you are about to meet by pooling information from various salespeople. This can assist in creating messages that are targeted at investors’ interests, prior to walking in the door.

The following are some steps for building relationships with the sales desk in the roadshow process:

• Initially access the sales desk through salespeople but then contact the marketing associated directly;
• Communicate broadly – talk about scheduling, logistics and other concerns you may have about the trip;
• Keep in touch – while on the trip, talk frequently to ensure there are no changes or surprises; and
• Follow up – contact the desk after the trip to obtain feedback and intelligence on the meetings for your executives.

One thing to consider when booking roadshows is that it can be beneficial to utilize more than one firm. (Just make sure that you give them different cities; otherwise you will be repairing a relationship rather than building it). In this way you can test the value of a particular firm: who was called, who agreed to a meeting, the road show’s effectiveness and quality. This will be useful information in determining who to reward with trips and associated sales when your company does deal roadshows.

Value to You

There are many benefits to working with the sales desk and they extend far beyond the overall logistics of a roadshow. Combined with the day-to-day plethora of an IRO’s responsibilities, a road show can be an overwhelming task, and the sales desk can save you time, energy and effort. The knowledge, assistance and interaction you will receive in the planning he event will certainly helps ensure an efficient and effective trip that maximizes the value of time spent.

So remember the sales desk and take the time to build strong relationships there. Otherwise you will miss a crucial opportunity to control your schedule and improve your marketing efforts.