You can have a great story and make the better presentation, but there’s nothing like seeing the people on their front line.
Reverse roadshow – trips organized by brokers and or by investor relations companies – so investors can visit a specific companie’s plants, are gaining in popularity.
Thanks to Internet, any investor can instantly gain informations, facts and figures about a business and a company; while intangible are far harder to discern.
Reverse roadshows are invaluable because you really get a feeling for the people inventory, dynamics and products.
Reverse roadshows are a golden opportunity to meet investors without first convincing top management to take a plane.
One of the biggest differences between a traditional roadshows and a reverse roadshow may be the tempo of the visits. On the road the top management is pressed for time because too much meetings in a day, instead at the head office, the company not trying to rush anyone out the door. If investors makes the effort to go to visit the company, management might spend some good hours with them.
Reverse roadshows have their own protocol. Typically, investors meet with management for 30 minutes, often visiting with the IRO before, the CEO or CFO for a brief Q&A.
It will be useful to prepare a draft of two-four page document of company highlights, explaining what investors will experience during the site visit.
Next come the site tour, which might run anywhere from 45 minutes to two hours and should be informative without being staged. What investors want most, is to have an authentic experience. The main motivation is to get a real feeling from the company headquarters and the plant. If you look at the faces of the workers, you get a sense of how motivated they are. The atmosphere is more relaxed at the headquarters and investors can wear casual.
Investors need to see the trip as worthwhile, especially given shrinking travel budgets and busy schedules. The companies must be know what the investors expect. Investors need to meet with experts who can help them to better understand the industry.
A successful reverse roadshow allows to equity sales people an opportunity to travel with their clients, building a grater relationship.
We gather feedback from all parties and share it with participants and companies. We do not look at these events as one-time occurrences, but as part of an overall plan to engage investors and companies in meaningful dialogue.