Investor Packages That Pack a Punch: How to Create Compelling Investor Information Kits

Raising capital is no easy task even in a buoyant economy. In a recession, it’s a tall order. Either way, to win investors, a company must present a compelling case for growth capital. A vital part of succeeding is the material the company prepares and how it is presented. Here is how to gain the eyes and ears of investors:

  1. Investor kits must contain the information investors need and want to make informed decisions, and it must be readily accessible.
  2. Avoid the temptation to exaggerate the company’s achievements. Sticking to facts with balanced explanations is the quickest way to earn credibility in the financial community. Avoid also the temptation to overload kits with peripheral information. Stick to information that is key to the capital requirements.
  3. The 21st Century is the age of electronics and color. Information packages must be available in three formats: print, electronic form, and on-line. Paper alone just doesn’t cut it, although still essential.

Many prospective investors still prefer the paper version. But the new generation of investment analysts and merchant bankers belong to the electronic age. Electronic versions have application both on the company’s website and for e-mailing to prospective investors and shareholders on request. DVD versions may be appropriate for special circumstances, and work best for power point presentations that some may be unwilling to access from the company web site.

  1. Choose quality over quantity. Most in the financial community have little time to dig through extensive collections of information — what they require must be readily accessible.

Thus, make the most important documents brief and place them on top – examples: corporate fact sheet (showcasing company achievements), summaries of recent announcements or news releases, and highlights of the latest quarterly report.

Following are lists of materials a company should include in their information packages, according to format:

Investor Packages: Paper

Face-to-face meetings with investors always involve two kinds of materials: copies either of discussion points or presentations to be made at the meeting, and leave-behind materials.

Investor ‘leave-behind’ packages should include the following:

  • Summaries of recent analysts’ reports on the company
  • Current annual report
  • Most recent quarterly financial report
  • News releases of recent announcements/events
  • Corporate Fact Sheet
  • Latest investor guidance
  • Biographies of key leaders: CEO, CFO, VP Mktg./Bus Dev.
  • Brochure(s) on key products (limit the number)
  • Optional: DVD of company products in operation, photos of key executive and other appropriate company scenes

Investor Packages: Website

The company website should have an Investor Information section containing in electronic format all of the following:

  • Summaries of recent analysts’ reports on the company
  • Current annual report
  • Most recent quarterly financial report
  • News releases of recent announcements/events
  • Corporate Fact Sheet
  • Latest investor guidance
  • Biographies of key leaders: CEO, CFO, VP Mktg./Bus Dev.
  • Brochure(s) on key products (limit the number)

These materials should also be available to website visitors in downloadable PDFs.

The Investor Information section should also provide links to recent media coverage of the company, as well as links to sections of the company’s website showcasing key products or services.

Media Kits

An initiative to win meetings with prospective investors can be helped along by coverage of the company in the news media in advance, centering on some newsworthy event or activity undertaken by the company. This raises their familiarity of the company and helps create a receptive climate for the company to present it’s case for growth capital.

Ideally, this would be coverage of an event such as the introduction of a significant new product or service, or an expansion, or major achievement such as record annual earnings. Appearances on TV business talk shows can be pivotal in this regard.

A core component for such an initiative is an information package prepared for the news media (‘Media Kit’), containing much of the same materials as for the investor information kit.

Include in media kits copies of any speeches associated with the announcement or event (usually labeled, ‘Notes for Remarks’) and the news release.

If the announcement involves a power point presentation, it may be appropriate to include a paper handout version, in color, three images per page, or in DVD format if visuals associated with the announcement will interest the media. Always provide the company website in every possible location, and links to other appropriate sites and locations.

Where appropriate, in the media kits intended for television journalists include relevant B-role, i.e., background images in video or DVD format. Media kits normally would include the handout version of the investor presentation. Similarly, a brief corporate profile (one-pager) is preferred to the Corporate Fact Sheet prepared for the financial community.

Include also relevant biographies and brochures about key products. A background article on the subject of the announcement is useful, if the information is not covered elsewhere, i.e., in the press release and speech. Don’t bother with old news releases. But do include the most recent annual and quarterly reports.

 

Leave a Reply

Your email address will not be published. Required fields are marked *