Investor targeting is critical to identify who should be on your side and how to engage prospective investors. With a proactive approach, you can bolster and diversify your investor base that is best suited for your company.
Investor targeting is a pivotal process of identifying and engaging the investors who can create value for your corporation and shareholder as well. It is not just about studying new potential investors who could be good-fits for you but also about contemplating and analyzing your own investor data. The sole aim of investor targeting is to curate a strategy for bridging the investor “gaps” and explore new possibilities.
But, first of all, you have to make yourself familiar with who are these entities that make up your shareholder base.
Take your time and ask yourself. Which shareholders are attracted to your stock and what can be the possible sources for this attraction? Are there any changes in ownership and why? Who should you add to your investor list and what corporate access strategy should you use to access them? Are there peers outside of your industry that has similar structures and stories? Assess which shareholders need your attention? Are there shareholders who need re-engagement?
Finding answers to such questions for investor targeting would help you understand your own investor landscape and learn more about your peers.
Exercising Investor Targeting Prior to Non-Deal Roadshows
Once targets are determined, important events such as conferences and non-deal roadshows are marked on the IR calendar. By exercising investor targeting, as a public company, you can easily evaluate events beforehand if attendance is important given the investors to seek. If it’s possible for you, find out the investors who don’t participate in the traditional conferences and contact them directly. This is a great way to demonstrate how your IR team proactively thinks and acts for corporate access.
Having access to profiles and other valuable data of investors can greatly help you prepare for investor meetings and non-deal roadshows. Thereby, it allows you to save your valuable time that you can utilize for developing and maintaining quality engagement. Discuss with your IR team and C-suite how you can cater to the needs of investors and shareholders by sharing the available information.
Strategies and Tools for Investor Targeting
Successful investor targeting can be expected only if it is conducted with a thorough and pensive approach. So, check out what you should involve for investor targeting.
- Implement internal processes to analyze and evaluate investors.
- Map out result-oriented strategies for communication.
- Plan meetings to implement discussed strategies.
- Scour new ways to log every activity and track the targeting process.
- Churn out the most important pieces of information and create a comprehensive strategy for targeting activities internally.
- Assess your existing targeting activities and optimize them.
- Don’t ignore the sources of captured data.
- Keep an eye on constant data updates
- Review your own investor structure as well as the available data of your peers.
Though the ultimate goal of investor targeting activities is to spot and engage the right investors for a public company, it involves analysis that may help you better for events such as roadshows and be compliant with all data security policies. So, start taking investor targeting seriously if you want profitable shareholders in your community without violating any rules.
AUTHOR: Rachel Johnes
