In today’s investment environment, shareholders are increasingly demanding accountability from corporate management and exerting their influence over companies’ business affairs and corporate governance. In order to anticipate, preempt and defend against shareholder overreach, companies must develop customized strategies to proactively and transparently engage with shareholders, analysts and other influencers.
Teneo’s investor relations practice advises companies on their engagement and communications with participants in the global financial markets to ensure that their securities are valued appropriately within the context of their performance and the market environment, and they have the support of their financial stakeholders.
Teneo views investor relations as engagement with the financial markets in a multi-dimensional fashion to enable a company to effectively compete for investors’ capital, maintain and/or enhance management’s credibility, and optimize (not necessarily maximize) its enterprise value.
A first step is to determine a firm’s appropriate valuation based on its performance in absolute terms and relative to its peers, and then leverage academically-proven research methodologies to understand the drivers of valuation and uncover any knowledge gaps, misunderstandings and outdated perceptions that can cause valuation anomalies. With an understanding of these disparities, we can help the company develop a strategic and tactical strategy to redress them.
Teneo’s investor relations experts partner with CEOs and their companies to articulate a coherent and compelling business strategy, detailed with a roadmap of goals and milestones that demonstrate business stability and progress to investors, while managing their expectations for the long-term.
To achieve these objectives, Teneo works with companies to develop or refine their positioning, messaging and investment proposition to reflect the market dynamics and overall business strategy. Teneo enhances the company’s investor materials and financial reporting through benchmarking and other analyses to ensure that they are aligned with best practices and industry value drivers. Our experts also provide quarterly earnings support, such as drafting and/or advising on press releases and scripts, prepping management for Q&A and performing pulse checks pre- and post-earnings announcements.
To promote a stable investor base that is aligned with its investor proposition, Teneo’s investor relations experts routinely perform analyses around shareholder sentiment and institutional capital flows.
Our team conducts investor surveys, interviewing existing, former and prospective investors, as well as sell-side analysts. Through this, we obtain insight into investors’ perceptions of a company, its strategy, potential for value creation, valuation methodologies and drivers, and its investment proposition. We also implement periodic “pulse checks” to ensure that the company’s messaging is resonating with the investment community. On a quarterly basis we analyze regulatory filings to identify institutional investor capital flows within a client’s shareholder base, as well as its industrial peers to determine whether the company is successfully competing for capital against them and attracting appropriate investors aligned with its investment proposition.
Our team also assists with institutional investor targeting, both domestically and internationally, including: assistance with roadshow planning and presentations and liaising with a banks’ corporate access team to ensure a company’s management is dedicating its resources to the right investors. We can also assist with specific investor targeting related to strategic initiatives such as an M&A transaction or an IPO.
In order to best determine a company’s industry and sector performance, and to properly assess a company’s standing within the competitive market landscape, our investor relations experts will also implement a series of analyses to weigh a company against its peer group.
The methods by which our team gathers peer and market intelligence includes: conducting due diligence on peers; examining both the company and peer enterprise valuations within the context of current and prospective performance; monitoring peers’ quarterly results and ad-hoc financial announcements; and benchmarking financial reporting templates and investor relations materials of peers and other leading companies.
Senior Managing Director
Senior Managing Director
Principal, Financial, Teneo Blue Rubicon