As a result, investor relations professionals play an important role in attracting new capital, maintaining liquidity, and ultimately increasing share value. In today’s highly volatile markets, this effort has become a greater challenge, requiring a tool set that equips the IR professional to identify and engage institutional investors, often before a competitor does so, and with a more compelling story.
According to “Global Roadshow Report 2011,” published by IR Insight, the research arm of IR magazine, 33 percent of survey respondents do their own investor targeting. Thirty-seven percent use the sell side, while 30 percent either use a combination or have no preference.
Translation: Close to two-thirds of IR departments (using the study as proxy) have at least some role in investor targeting.
This is especially prevalent in companies with market capitalizations below $5 billion, where 44 percent of respondents indicate they do their own targeting. There is a salient need in the IR community to master investor targeting to reap rewards of liquidity, engagement, and growth in share value.