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Using Investor Relations to Maximize Equity Valuation

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Using Investor Relations to Maximize Equity Valuation

Wiley,

15 min read
10 take-aways
Text available

What's inside?

Your company's investor relations hinge on knowing what stock information to give out, and when, and how.

Editorial Rating

6

Qualities

  • Applicable

Recommendation

Authors and consultants Thomas M. Ryan and Chad A. Jacobs, cofounders of an investor relations consultancy, provide a basic introduction to the ways of Wall Street that will be useful to new staffers in investor relations (IR) departments, or to companies that are deciding how to handle IR. The most valuable part of the book comes in chapter 20, where the authors offer companies a good guide to handling earnings releases and stock analysts’ conference calls. The least valuable part is the oft-repeated advice to companies that they should hire investor relations consultants - like the authors. getAbstract suggests this book to companies that are defining their investor relations function.

Summary

The Importance of Investor Relations

Investor Relations (IR) should be a component of every communication decision your company makes. Some people may think that it’s enough for a company to produce a great product or deliver a great service. Doesn’t common wisdom tell us that the world will beat a path to the door of the fellow who makes a better mouse trap? Well, common wisdom wasn’t talking about Wall Street. Stock value depends greatly on how well a company communicates with its most important constituencies in the capital markets: investors, regulators, the media, the buy side and the sell side.

The Capital Markets

Capital markets join people with money to invest with people who need investment capital. The phrase "sell-side" refers to those who represent companies in need of funds. These representatives (usually investment banks and brokerage firms) are sellers. They sell stocks, bonds and other financial instruments to investors.

The "buy-side" refers to investors with money to spend. The investors who matter to most companies are institutional investors, including the managers of mutual funds, pension funds, insurance company portfolios, commercial...

About the Authors

Thomas M. Ryan and Chad A. Jacobs are the co-founders and co-CEOs of an investor relations consultancy, and former managing directors of a corporate equity research department. Ryan helped lead at least $5 billion worth of investment banking transactions and was featured on CNNfn, CNBC, Money Talk (PBS), WNYC V and Bloomberg Television. Jacobs has had extensive media coverage and served as a roundtable member on CNNfn.

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