Investor relation consists of finance, communication, and marketing effectively to control the exchange of information between a public company, its investors, and its stakeholders. Investors are an integral part of a company and they ensure success and growth. That’s why the company needs to maintain a strong and transparent relationship with them and this is where the investor relations department agencies come into play.
What are investor relations?
It is a division of business usually of a public company that provides investors with a brief of the company’s affairs. This helps the investors to make an informed decision about the investment in that particular company. The investor relations department requires integrating the company’s accounting department, legal department, and executive team.
This post is here to help you understand investor relations in a much broader sense.
The goals of investor relations
· To achieve the optimum share price as it reflects the fundamental value of the company
· To represent the company’s status to the investors
· To provide accurate financial information to the investors
· To provide non-financial data to support the company’s valuation
· To closely observe the rules of security commissions and stock exchange
· Make the company aware of the investors’ feedback
Hiring an investor relations firm is not a cakewalk. So many things depend on the relationship you build with shareholders. That’s why you need to have total trust and confidence in your IR partner. The investor relations agencies vary from one another widely which makes the choice even more difficult. Finding the right IR agency takes time and research. Below are the questions that you need to ask from the shortlisted investor relations agencies to precisely choose the one that suits your needs:
Do they focus on investor relations?
So many firms include IR as one of their specialties. Given that, IR involves a slew of communications, PR companies often add it to their list. The companies consider it as the cost saver as they are getting PR and IR both for the price of one. However, the reality is that the PR companies focus only on their specialty which is PR and IR is very different from PR.
IR is an intricate field that involves finance policy, business strategy, and much more. The same way you look for a dentist when your toothaches, find the IR specialist when you want to manage your relationship with investors.
Do they have specific knowledge of your industry?
The Investor relations specialists often shift from one industry to another within a single day. It’s not unusual for them to work for technology in the morning and healthcare in the evening. Every industry involves different types of bankers, stakeholders, and investors. So, you require a firm that works with a knowledge-driven approach. They should have the time and resources to understand the dynamics that are important for a particular industry.
We are ending this post with the hope that you find it helpful. If you want to know more, get in touch with investor relations beratung experts.
