Investor targeting is an important approach that helps public companies to identify who their shareholders are and who are not. It is like filling in the gaps in your investor relations through various ways like roadshows, investor days, meeting asset managers in person, and so on. But, if you want to target your investors smartly, there are several other ways. Let's explore what these are.
- Diversify Your Sources of Help and Research
Most IR research firms have dedicated investors targeting teams and programs for shareholder identification services. The problem with this research is that it limits the number of investors and you will see the same investors in every conference and event. So, it is best to diversify your sources and find investors from different areas and fields to get wider exposure.
- Search outside Institutions
It is best not to become a well’s frog. You should explore other sources of investors such as family offices, pension funds, or registered investment advisers. As these sources don’t generate commissions for IR advisors, they get less exposure. No doubt many pension funds are largely indexed but they manage their assets actively and thus, are good candidates for investment.
- Analyze Investor Ownership
Another important step in your investor targeting can be finding out the investors who have made investments in similar companies. However, it can be a tricky task in the healthcare sector as there are different ways to define peer groups but in a company with limited exposure, for example, a biotech company, you can focus on close peers.
You can cross-reference shareholders from hyper-specific peer groups to get a relevant list of investors. It is helpful because meeting investors (who already know and support the industry) will allow you to use your meeting time effectively and efficiently.
- Interact with Your Economics and Finance Department
Communicating and keeping check with your economics and finance department regularly can provide you with invaluable insights into your economic stature. With this information, you can easily figure out the economic view and your growth profile within that economic context.
- Keep an Eye on Turning Points in Investor’s World
Sometimes, a new investment, a shift in overseas markets or change in management may need you to revisit your targeting strategy. So, always keep your senses at alert to notice what new opportunities are out there globally.
- Try Different Ways to Tell Your Story
There was a time when investors were focused on getting details mainly on financial results but now the approach has changed. Today’s investors are more interested in stories and concepts and knowing if a company follows sustainable deals. Not moving with what investors are demanding can give you whiplash. So, figure out different ways for IR narration.
- Involve Tech in Your Targeting Scheme
Virtual communication services are great for those who are looking to target investors without traveling. Use software solutions and online live communities, where thousands of investors log their interests, to target and identify investors.
- Think of Targeting at Global Level
Investors of the modern world are thinking and investing globally, so IROs need to think at a global level too. Don’t restrict your focus to main investment hubs. Explore beyond your limits and put some effort into finding top-flight investors in second and third-tier cities as well.
It is not always necessary to go out for targeting your investors. For investor targeting, you can also make them come to you by arranging a one-day corporate visit. It can be a great way to meet several investors and get familiarize with them in one place.