Best Practices for Effectively Communicating With Institutional Investors

You’ll need to follow some basic best practices to engage with institutional investors. For example, you’ll want to keep the conversation going, engage in frequent and meaningful communication, and leverage digital tools to connect with your audience.

Engage early and often

Your board must keep an eye on the broader environment and engage with large investors proactively and consistently. Making sure institutional investors know how to communicate with your business is one of the keys to doing so successfully, according to Landon Thomas Jr. While many investors have a broader perspective on the financial side, they also want to know that the company is managing risk, talent, and strategy. In addition, they are looking for a way to build alliances with companies they are interested in.

The best time to engage with these institutional investors is during the quieter months of the year. Companies can establish a foundation for communication through one-on-one meetings with them. These are also great ways to identify committed shareholders. Additionally, a company’s management team should be willing to participate in these meetings and help propose topics. For example, the CFO or GC might participate in the conference, along with the head of IR, and the CEO may be invited to discuss recent developments.

Leverage digital platforms

Most companies need to be aware of leveraging technology for growth and efficiency. A digital platform can help you harness this elusive powerhouse to help your bottom line.

While you may already have a robust database, you’ll need to remember that the competition is out there, and new entrants are popping up like mushrooms. Looking for opportunities to engage with these newbies is a good idea. Creating an online presence and using social media are great ways to start. An excellent digital marketing strategy will help you convey your message to various investors.

Another way to make a digital splash is to implement a content marketing program. It can include creating a blog and distributing informative content to your readers. As you engage with your community of interested parties, you’ll be on your way to becoming a brand authority in your industry.

Present an investor presentation

If you’re preparing a presentation to investors, there are several best practices to follow. You need to convey your business strategy and position in the markets and provide a concise and precise snapshot of your investment opportunity. Then you can anticipate any potential questions during the Q&A period.

An annual report is one of the most effective ways to communicate with institutional investors. It is an important marketing tool to attract new investors and fulfills regulatory reporting requirements. An annual report is also an excellent way to demonstrate that your company has a solid track record.

Another option is to use an email list. Emails are a quick and easy way to get your content out to a broad audience. When presenting to investors, including the investor’s name and email address. You can easily reach them by adding this information to your IR database. Additionally, the email list can be used for paid media campaigns.


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