If you watch CNN, you know Brexit is now the crisis du jour. The early dip in the global stock markets were severe, but not devastating but have left both Wall Street and Main Street buried in a Chunnel full of what ifs and now whats. Certainly, our 401Ks may well take a short-term hit, however the global economy, not unlike investor relations, is a long-term play. That said, keeping US-based shareholder value high is paramount, and to do that shareholder confidence must remain high… and that requires shareholder communications.
The first step for US investor relations departments prior any commutations: Think like an investor. Where will their concerns lie? How can you hold their confidence?
- Understand the actual fiscal exposure your company has in the UK, germane for banks and financial services corporations. Work with the models your investors use to see the impact. Call your top US investors for their perceptions.
- Will London lose its weight as an investor destination? Call your top UK investors for their perceptions. What are their plans?
- Pundits are already stating that NYC will become a stronger investor destination. Re-run your targeting models and non-deal roadshow schedules?
- London may no longer be a gateway to EU investors. Do you need to directly pierce your messaging deeper into the EU? What is your financial brand like in these non-Anglo countries?
- Understand the actual tangible physicality your company: factories, employees, suppliers. Will a lower pound be positive or negative?
I guess the base question is – and a company can only answer this individually – what if there is probable material impact? Does IR wait until the next quarterly call to disclose that? Do you let The Street write their own narratives about your value? Do you, if you pardon the PR parlance, “get ahead of this crisis” before it becomes a crisis? Preparation, not panic.
Shareholder communications builds shareholder confidence. Shareholder confidence builds shareholder value.
What / how is the best way to communicate with investors? Request our new “How Investor Relations Consume IR Content” study.
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