The Voice is to The Street
I am a new fan of The Voice. I love the premise that first a singer has to impress the judges with voice only. Only when the judges have screened the singer by voice, do other criteria come into play for an overall assessment. What is the singer’s repertoire, style, future promise?
For publicly traded companies, so too is it important to have the full picture. A company’s financials are only part of the overall valuation. Investors also want to understand the company’s product, strategy and future prospects. Thus the importance of non-deal roadshows.
The opportunity to take a company on the road cannot be underplayed. Investors are interested in assessing the full scope of a prospective investment. As such, face-to-face meetings are critical for publicly traded companies. Just as The Voice offers singers an opportunity to work with coaches who critique the singers’ overall delivery, so too do non-deal roadshows give companies real-time feedback into how they are viewed by the Street. Do investors think your product is strong but your marketing strategy needs work? Is there support for your technology but questions about the end market?
Presenting to a live audience enforces a discipline that cannot be replicated by putting out press releases. Rather, a live audience demands careful attention to the message. If the message is strong and the story holds together well, a live audience will be quick to respond.
So to all public companies we say, don’t rely on your financial voice alone. Get out there and hit the road. Only when you’re in front of a panel of judges will you really understand how well your story is resonating.