Mar 2, 2017

Demystifying Investor Relations Challenges

By: David Wayne, Marketing Specialist

What is Investor Relations (IR)? The National Investor Relations Institute (NIRI), the leading U.S. professional organization, defines investor relations as “a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company’s securities achieving fair valuation”. As this definition illustrates, investor relations is both a financial discipline and a communication function. It clearly emphasizes not just communication but “two-way communication,” a concept well-known to public relations professionals.

One of the largest complaints against public traded companies can be their lack of responsiveness. If you work within Investor Relations, you well know that one of the main challenges is engagement with the investor community explaining company strategy to them, providing regular company reporting and publishing company results. One of your main goals is to communicate and market your company’s messages to current and potential investors. How often and how you communicate with the investor community could be your greatest asset or weakness. As a leader in the industry, B2i Technologies has been working with publicly traded companies for nearly twenty years, specializing their technology solutions to help IR/PR professionals become more responsive to their investors. They offer a fully compliant and customizable IR solution that provides real time, multi-format SEC filings, corporate governance, full communications, and investor intelligence.

Did I mention it’s cost effective, easy to implement, update, and use?

Companies need to be more attentive than ever not only to what they tell investors, but how they convey that information and stay compliant, while helping them understand where the company is headed. The key is to get information out in a timely impartial way, good and bad news, and then the market decides how much it values the company. Smaller companies can have an even harder time gaining analysts’ and investors’ attention. All this has heightened the importance of IR professionals to help companies to be heard and doing so efficiently. Companies that once could gain the stock market’s attention by talking to a handful of analysts must now reach out directly to potential investors.

B2i’s software provides analysis and guidance to IR and PR professionals on where to focus communication efforts for maximum impact and efficiency by dramatically reducing the time, effort and expense in executing online and offline IR/PR strategies. They have been continually developing extensive IR functionality not offered by its’ competitors and provide companies with a seamless integration of real-time reports about investor relations activities and trends, while handling contacts, emails, press releases, presentations, interviews, SEC filings, and conference calls.

In conclusion, your shareholders may outnumber you 10,000 to 1, you are required to find new institutional investors without spamming them with emails, and the SEC will hold you personally accountable should anything fall through the cracks. How do you handle these responsibilities, and ensure your communication plan is sound? For communication to be both sound and strategic, you typically consult with many advertising, marketing, public relations professionals. Developing and maintaining effective relationships with research analysts, institutional investors, and retail brokers, is a primary responsibility, but sometimes difficult to achieve.

B2i Technologies, a leader in the IR technology sector, can help you to be more efficient in disseminating company updates to your key constituents. Call us today to discuss your corporate website, as we know it is a focal point for your communications. B2i can host or design a custom-built website or be plugged into an existing WordPress or other site where we can provide easy-to-use data tools for SEC Filings/Press Releases, and more.

972-234-9222 | Email:support@b2itech.com