Creating a Compelling IPO Roadshow Presentation

When you are competing for cash in a standard IPO or a SPAC-relevant PIPE transaction, you only have one possibility to make a very first impression. The stakes are large and hanging in the equilibrium is accessibility to the cash you will need to scale your corporation and accelerate your market management. Are you all set to produce a activity-shifting presentation? 

Here’s what you’re up in opposition to:

• You will most most likely have less than an hour to encourage savvy institutional investors to get a guess on your company model and capacity to execute. 
• You will be presenting to people today you’ve never ever achieved ahead of who will be placing you underneath a microscope.  
• It is commonly a difficult group — portfolio administrators who say no for a residing and sit via countless shows just like yours just about every 12 months. Count on them to be from time to time jaded and tricky to impress.
• Some investors may arrive to the meeting with authentic curiosity other folks will know up coming to almost nothing about your corporation and make you perform tricky to educate and interact them. 
• A part of your viewers will have no intention of proudly owning your inventory they’re there generally to get market intelligence due to the fact they personal a competitor.
• Others will go straight to Q&A instead than allowing for you to existing your tale. They will request a series of granular concerns on topics and chance factors that give them the info they will need to choose if they want to take part in the transaction or not.  

A well-crafted and delivered presentation is crucial to overcoming these obstacles and finishing a prosperous IPO. Certainly, a roadshow presentation is maybe the most crucial sales pitch a CEO and CFO at any time make. 

Your presentation have to convey to a concise and compelling tale about why investors must acquire your inventory. Maintain in mind that an investor’s why has more to do with regardless of whether they imagine your corporation can produce a compelling return on their investment instead than being familiar with the in depth characteristics and gains of your merchandise or providers. Basically place, you will need to solution the issue: Why is your corporation a superior investment prospect relative to the thousands of other publicly traded firms they can devote in?  

What some executives do not completely take pleasure in is that investors are betting on your management team’s capacity to execute your approach. To start with impressions rely they want to swiftly sizing you up and choose regardless of whether you are credible and capable of delivering on your claims. 

Right here are 3 important suggestions for a prosperous IPO roadshow presentation.  

1. Know Your Viewers and What They Care About  

Achievements starts off with understanding the Wall Avenue viewers and what they care about. Key attributes investors worth are execution observe document, strategic eyesight, management high quality, sustainable competitive advantages, and effective cash allocation. Your presentation have to handle the following concerns:  

• What do you do? What exceptional problem do you resolve?  
• What is your market prospect and what element of that market can you capture over the up coming a number of several years? 
• What is your growth approach and what are the growth drivers? 
• Who is your competitiveness and what are your sustainable competitive advantages?
• What is your company model — how do you make dollars?
• What is your prepare for worth development close to and lengthier-expression? Why will your corporation be truly worth more a 12 months from now than it is nowadays? 
• What is your economical place? How will the proceeds from the transaction be utilized to generate growth and returns?  
• What is the qualifications of the management workforce and what have they done in the past that would give investors ease and comfort they can execute? Who is the “bench” that will aid management in executing the growth prepare?
• What are the intangibles that generate worth development for your corporation? 
• What metrics and milestones are most crucial in benchmarking development in opposition to the prepare? 
• What is your ESG tale/narrative? 
• What are the important threats associated with proudly owning your company’s inventory, and how are you mitigating them? 

2. Get ready for Just about every Assembly Like It is the Most Important Income Pitch Ever

Outside of being familiar with the Wall Avenue viewers, you will need to prepare for every single meeting on your IPO roadshow. A person sizing does not match all. Investors have distinctive techniques to conclusion-generating ranging from growth to worth orientations. Just about every investment manager screens for distinct features that align with their investment aims. You will need to know what individuals are so you can map your investment tale to their stated investment parameters and foresee their concerns and objections. 

In advance of every single meeting, you must know: What are the firm’s property underneath management (buying electric power) and portfolio turnover? What is their possession profile in your sector/peers? What is their investment design and style? What can you establish about their investment conditions that make them a opportunity purchaser of your inventory? As with any great sales connect with, understanding the backgrounds of the people today at the meeting is very handy in generating a particular link correct off the bat.     

3. Apply Delivering the Presentation and Get ready Diligently for Q&A

Keep in mind, your presentation will only be successful if you produce it winningly. Most firms understand that effective shipping techniques are a competitive gain and set time apart for formal presentation schooling ahead of an IPO roadshow. Outside of delivering the presentation, it is very crucial to diligently prepare for the Q&A, due to the fact it is generally more crucial than the presentation alone. 

In the Q&A, investors want to see if management can think on their toes and solution unanticipated and from time to time tough concerns. With an trader viewers, being familiar with the intent of the issue is also crucial – what are they hoping to get at or what are they missing? Every single issue gives an prospect to strengthen your investment thesis, generate property a important information that will incorporate to their being familiar with — but it is difficult to navigate the approach to the very best end result without the need of comprehensive planning.  

In our experience, even the most talented and comfy government presenters benefit from demanding presentation and Q&A schooling ahead of videotaping the roadshow or embarking on the very first IPO roadshow meeting. Lots of of the strategies of vintage media schooling — bridging, pivoting, and flagging perform well for a Wall Avenue presentation. Right now, it is also crucial to prepare for virtual engagements, which have their personal distinct hurdles.  

So, get to perform and remember that the highway to a prosperous IPO is paved with exhaustive planning. The investment in setting up a stand-out presentation can pay out large dividends: namely, the growth cash you will need to make your eyesight a fact.  

Excellent luck! And bear in mind that there is almost nothing accidentally “lucky” about a wonderful roadshow presentation. 

contributor, IPO, roadshow, SPAC