May 19, 2024


Make Every Business

Creating a Compelling IPO Roadshow Presentation

When you are competing for funds in a conventional IPO or a SPAC-related PIPE transaction, you only have 1 opportunity to make a very first perception. The stakes are high and hanging in the harmony is obtain to the funds you want to scale your company and speed up your market leadership. Are you prepared to provide a sport-changing presentation? 

Here’s what you’re up towards:

  • You’ll most very likely have less than an hour to convince savvy institutional buyers to take a guess on your company product and ability to execute. 
  • You’ll be presenting to persons you’ve in no way satisfied just before who will be putting you less than a microscope.  
  • It is typically a rough crowd — portfolio managers who say no for a dwelling and sit through many presentations just like yours every year. Expect them to be in some cases jaded and challenging to impress.
  • Some buyers may perhaps come to the meeting with genuine curiosity many others will know up coming to nothing at all about your company and make you do the job challenging to educate and interact them. 
  • A portion of your audience will have no intention of proudly owning your inventory they are there generally to get current market intelligence simply because they possess a competitor.
  • Many others will go straight to Q&A rather than enabling you to present your tale. They will ask a series of granular questions on subject areas and possibility things that give them the information and facts they want to make your mind up if they want to participate in the transaction or not.  

A nicely-crafted and shipped presentation is important to conquering these road blocks and finishing a successful IPO. In fact, a roadshow presentation is most likely the most critical revenue pitch a CEO and CFO ever make. 

Your presentation should inform a concise and powerful tale about why buyers must obtain your inventory. Retain in mind that an investor’s why has more to do with irrespective of whether they believe that your company can provide a powerful return on their investment decision rather than knowing the in-depth options and benefits of your products and solutions or expert services. Merely put, you want to response the concern: Why is your company a far better investment decision prospect relative to the hundreds of other publicly traded firms they can devote in?  

What some executives never completely recognize is that buyers are betting on your leadership team’s ability to execute your approach. Initial impressions rely they want to rapidly measurement you up and choose irrespective of whether you are credible and capable of providing on your promises. 

Listed here are three important suggestions for a successful IPO roadshow presentation.  

one. Know Your Audience and What They Care About  

Achievement starts with knowing the Wall Street audience and what they treatment about. Important attributes buyers price are execution observe record, strategic eyesight, administration quality, sustainable aggressive pros, and helpful funds allocation. Your presentation should address the next questions:  

  • What do you do? What distinctive difficulty do you fix?  
  • What is your current market prospect and what component of that current market can you capture around the up coming a number of several years? 
  • What is your progress approach and what are the progress motorists? 
  • Who is your competition and what are your sustainable aggressive pros?
  • What is your company product — how do you make revenue?
  • What is your prepare for price generation close to and extended-expression? Why will your company be really worth more a year from now than it is nowadays? 
  • What is your economical posture? How will the proceeds from the transaction be used to generate progress and returns?  
  • What is the qualifications of the leadership crew and what have they performed in the previous that would give buyers comfort and ease they can execute? Who is the “bench” that will assist administration in executing the progress prepare?
  • What are the intangibles that generate price generation for your company? 
  • What metrics and milestones are most critical in benchmarking development towards the prepare? 
  • What is your ESG tale/narrative? 
  • What are the important risks involved with proudly owning your company’s inventory, and how are you mitigating them? 
2. Get ready for Each individual Meeting Like It’s the Most Important Sales Pitch At any time

Outside of knowing the Wall Street audience, you want to put together for every single meeting on your IPO roadshow. 1 measurement does not in good shape all. Investors have unique strategies to determination-making ranging from progress to price orientations. Each individual investment decision manager screens for unique traits that align with their investment decision aims. You want to know what these are so you can map your investment decision tale to their mentioned investment decision parameters and anticipate their questions and objections. 

Ahead of every single meeting, you must know: What are the firm’s belongings less than administration (purchasing electric power) and portfolio turnover? What is their ownership profile in your sector/friends? What is their investment decision model? What can you determine about their investment decision standards that make them a prospective purchaser of your inventory? As with any good revenue simply call, knowing the backgrounds of the persons at the meeting is very handy in making a particular link proper off the bat.     

three. Follow Providing the Presentation and Get ready Diligently for Q&A

Don’t forget, your presentation will only be successful if you provide it winningly. Most firms comprehend that helpful shipping and delivery competencies are a aggressive edge and set time apart for formal presentation schooling forward of an IPO roadshow. Outside of providing the presentation, it is very critical to diligently put together for the Q&A, simply because it is normally more critical than the presentation alone. 

In the Q&A, buyers want to see if administration can assume on their feet and response unanticipated and in some cases challenging questions. With an investor audience, knowing the intent of the concern is also critical – what are they hoping to get at or what are they missing? Each concern provides an prospect to fortify your investment decision thesis, generate dwelling a important concept that will include to their knowing — but it is difficult to navigate the procedure to the best outcome without extensive preparation.  

In our expertise, even the most proficient and snug government presenters benefit from demanding presentation and Q&A schooling forward of videotaping the roadshow or embarking on the very first IPO roadshow meeting. Lots of of the strategies of common media schooling — bridging, pivoting, and flagging do the job nicely for a Wall Street presentation. Now, it is also critical to put together for digital engagements, which have their possess unique hurdles.  

So, get to do the job and bear in mind that the road to a successful IPO is paved with exhaustive preparation. The investment decision in scheduling a stand-out presentation can spend substantial dividends: specifically, the progress funds you want to make your eyesight a truth.  

Fantastic luck! And bear in mind that there is nothing at all accidentally “lucky” about a wonderful roadshow presentation. 

contributor, IPO, roadshow, SPAC