Returns on your time with the sell side
In terms of boosting companies’ targeting efforts, alliances with the sell side can be highly beneficial.
‘It’s a collaboration, in our view,’ says Andrew Hanson of Victrex. ‘We use targeting databases and can look at what activity we’ve done previously and then consider some new approaches.’
The sell side’s information is always more up to date than even the best of in-house systems when it comes to targeting
Adding her thoughts, Liz Scorer of Foresight Group says: ‘The sell side has the advantage of equity sales teams in the flow, so its information is always more up to date than even the best of in-house systems when it comes to targeting. IROs can use this data alongside traditional methods, such as CMS, to really maximize their impact.
‘For example, if you’re building a roadshow schedule and have management available, to make the most of time and investment, brokers can speak to sales teams and get a steer on where to invest their budget where inflows are recent.’
For Timken’s Neil Frohnapple, thinking outside of the box with the sell side can lead to tangible results outside of traditional targeting methods.
‘Many middle-market territories – such as Atlanta and Minneapolis – are more willing to take meetings with the IR team without senior management,’ he explains. ‘I’ll ask the sell-side firm whether it is willing to set up a day in one of these territories where its sales team has good relationships. I make it clear that organizing an IR-only non-deal roadshow would be an incremental day for the current year – it does not replace a non-deal roadshow/conference with senior management.
‘I have had good success leveraging where the respective sales forces have good relationships in organizing productive IR-only targeting trips.’