Investor Relations and PR

Investors make up an important audience and should be considered in their own right.

They should be treated with caution and respect.

Investor relations is a PR exercise that uses PR to communicate effectively with investors.

It is about building confidence in the management and that depends on showing competence and integrity of the management.

Investors will never have faith in a business which attempts to hide a problem.

Given below are some specifics that should be considered while communicating with investors.

Do Research

An investor relations plan should not be formulated before knowing the investor community’s knowledge and its impressions of the company it desires to invest in.

An assessment like this is a useful benchmark against which a PR professional can later measure how well their messages are getting through.

Share Plans

A company needs to give the investors a simple roadmap to explain where it is coming from, where it is going, and how it is going to get there.

It is important that the company regularly measures its progress against these objectives and communicates that progress to investors.

If this is done then all investors can understand the most complex business.

Do not Bury Bad News

Information given to investors should be candid information about successes and failures.

Bad news should not be hidden behind promises and excuses.

If companies try to bury bad news they risk more than their credibility.

Shareholders can sue the company for misleading them.

Manage Stock for Value

Investor relations should be considered important not because they manage share price.

The focus should be on communicating a strong business plan, this will lead to trust and confidence.

The share price will also find an appropriate and sustainable value.

Communications During Mergers and Acquisitions

During a merger or acquisition, the strategy of the PR professional should include a plan to get messages to and through the news media.

There should be preparation for all the scenarios that might unfold.

The media plan should have clear objectives and strategies for reaching key audiences.

When the merger and acquisitions heats up, news releases should be drafted and media interviews should be conducted.

The management should not appear tentative and inconsistent under fire. That destroys credibility.

At such times, communications staff should be kept close.

A merger or acquisition has an impact on the work environment of the employees.

The employees should be informed directly and frankly about the progress of the merger and acquisition.

Openness and honesty always pays dividends. Employees are important communication links with the general public, suppliers, and customers.

Their attitudes and comments will help to determine how the messages of the company are received by these stakeholders.

A credible and competent face should be presented to the media and the market.

The spokesperson of the company should be able to frame key messages in a compelling and concise manner.

Ronn Torossian is the Founder & Chairman of 5W Public Relations, one of the largest independently-owned PR firms in the United States.

With over 20 years of experience crafting and executing powerful narratives, Torossian is one of America’s most prolific and well-respected Public Relations professionals.