Is there better way to communicate with your clients and investors than face to face? If you think there isn't than road show might be the answer you were looking for. What are they and why are they so important? Roadshow is series of meetings where representatives of the company give a presentation about investment opportunity to current and potential investors.
Companies have variety of reasons why they conduct road shows. The most common reason for organizing a road show is an initial public offering (IPO), a process when previously private company offers its shares to be publicly traded on stock exchange. Other reasons for a road show include privatization of a government owned company or when a company is when a company makes secondary offering of shares in order to raise more money. A non deal roadshow (NDR) occurs when executives hold discussion with current and potential investors without offering securities for sale. Main reason for NDR is providing investors with information about the business.
Company's top management or its underwriters travel across different regions and cities in order to meet with the potential investors, financial analysts, fund managers and brokers and offer the securities for sale. The main purpose of a roadshow is to generate interest and excitement. It is critical part of an IPO process because it enables the issuer to generate favorable opinions and successfully close the offer. Road shows demand a lot of planning, all meeting have to find the location, schedule meetings in advance fitting them in a set time frame.
The most important part of a road show is content. Besides multimedia presentation, event includes question and answer (QA) sessions. Roadshow presentation can be shared online on various platforms and reach wider audience. Topic discussed on the meeting include company's history, reasons for going public, financial outlook and potential for growth. Road show is a great opportunity to see how much potential investors are willing to pay. After the road show final prospectus is created and filed with SEC.
Direct communication offers unique opportunity to address every aspect of the business, especially in QA sessions where offering can be exposed to skepticism. But on the other hand there is big chance that with careful planning and impeccable presentation you can leave good impression. This way you will be able to reach investors they you won't be able to reach otherwise. You are there with people that came because they want to learn more, you don't have to fight for a conversation so use your chance and attract hundreds of prospective buyers.
If you feel overwhelmed we have good news for you! Our staff at MMG helps companies having fundraising mode that are doing road shows in order to seek capital and also gives contacts of fund analysts and managers to companies. Also, we are different from other competitors through the provision of special “virtual road show” service to clients, giving them the chance to meet the individuals from the investment community from their office.We create all materials for financial marketing to convincingly convey the investment statement while showing an expert and credible appearance to the investor communications of our clients.
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