Once you have made the decision to head out on the road for a retail investor relations roadshow, it is easy to decide where to start. Following are the most common strategies.
Start Close to Home Investors have a natural interest in locally-based companies. Regardless of the industry sector, business product or end market, there is a built-in affinity for companies that are “geographically correct.” Using this approach, companies start by holding meetings in cities that are a drive or day-trip away. Thus a company based on the west coast could start withSan Francisco, then move down the coast toPasadena,Los Angeles and/orSanta Monica.
Tie-In with Other Business Another approach is to tie investor meetings with existing business travel. This is an excellent way to use management’s time as business meetings can be scheduled around investor meetings and vice versa. The Corporate Forum can schedule investor meetings in all the major cities and most of the secondary cities.
Leverage Existing Pockets of Holders If your investor base is already concentrated in one geography, it can be a good idea to leverage those investors to garner the attention of others. Continue to meet with cities with existing pockets of holders to enhance critical mass; then move on to cities with little or no presence to begin to build visibility in new cities.
Begin with the End Market For some companies it can make sense to start with investors who are close to your company’s end market. For example, a company which sells to the Federal government, would first meet with investors inWashington,DC; then move up the eastern US through Baltimore,MD; Philadelphia,PA; New York and then Boston.
The key is to book time now to ensure the dates and cities you want.