Friday, May 10, 2013

Top 10 Rules for an Equity Road Show

When coaching a management team that's raising equity for a private or public offering, I always first work individually and then pull them together for coaching as a team.

To illustrate, a company’s IPO roadshow is a chance for investors to meet the management team and watch them pitch the investment opportunity. Delivering the message is a rite of passage and an important exercise for management to perfect the art of selling, coordinate roles and answer questions effectively.

And, interested investors gain information about the company and valuable insight into a team from watching them deliver their story, interact with each other and field questions. How the management team persuades and performs can provide a window into how the company will execute going forward.  

Here are some tips to ensure successful team presentations.
  1. Work as a team. Share the spotlight. Investors don’t want to invest in a one-man/woman band.
  2. Practice as a team to develop a smooth cadence to present a seamless company story.
  3. Manage Q&A. Identify likely investor questions and prepare answers. Decide who will answer a particular question. Never try to wing it or bluster through, as investors know when you’re not telling the truth or your answer is tentative.
  4. Memorize the presentation and slide order.
  5. Know all the parts in case you have to fill in for a team member. (I still remember a CFO who got sick in Amsterdam and couldn’t make several meetings!)
  6. Practice Q&A etiquette. Remember that there are no dumb questions. Always answer a question with enthusiasm and as if it’s the first time you’ve ever been asked.
  7. Listen carefully to questions and think before you answer. If you prepared adequately, the answer is in your head waiting to be downloaded.
  8. Ears have lousy memories, so never refer back to the presentation to make a point (i.e., “As you may recall, I went over this information in the roadshow.”).
  9. Be prepared. Research the attendees before the meeting.
  10. Set a goal. Close every meeting and get the order!

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