The value of strategic investor targeting
By taking a strategic approach to investor targeting, IR teams can play a vital role in supporting the long-term development of their company.
Companies need shareholders that support the corporate strategy – not just now, but also as the business grows and evolves. By taking a long-term and thoughtful approach to targeting, IR teams can help curate a shareholder base that will be supportive of the business for years to come.
There are many different examples of taking a strategic approach to targeting. A company switching strategy or product lines will need shareholders that are comfortable with its new direction, for example. Smaller companies often lack the liquidity needed to attract institutional investors; they can benefit from targeting retail investors and other liquidity providers.
And, increasingly, ESG targeting is becoming popular as companies look to align their shareholder base with their sustainability story.
‘If you can have a shareholder base that’s very like-minded with management, it takes a longer-term perspective on value creation,’ says Camilla Bartosiewicz, chief communications officer at Altus Group, a market intelligence provider to the global commercial real estate industry. ‘With that alignment, our shareholders in effect become our business partners, providing for a very constructive relationship. And that’s something you can achieve only if you have a very diligent focus on investor targeting.’
For this best practice report, IR Magazine has spoken with leading investor relations professionals and communications consultants about how they set long-term targeting goals, plan outreach with prospective investors and measure the success of targeting programs.
