INVESTOR RELATIONS: Main to grow the company and keeping investors, partners, and team aligned

Investor Relations (IR) is one of the areas that are in charge of putting companies that need capital in contact with those investors with excess liquidity and vice versa. In the last 15 years, the figure and the department of Investor Relations have gained special relevance. Its main function is none other than to maintain an open and constant dialogue with the financial community, including analysts, minority private shareholders, large institutional shareholders, credit rating agencies, and other market players.

It is good corporate governance practice to ensure timely and accurate disclosure of all material matters relating to the company, including the financial condition, results, share ownership, and governance of the company. This is established by the Organization for Economic Cooperation and Development (OECD) in its 2015 corporate governance principles.

It is essential that this structure has, in the first instance, a great understanding of the mission, vision, line of business, strategy, and operation of the company, and of what is currently happening to it, as well as in-depth knowledge of what the market or investors try to find.

The IR area will be able to tell a story that is understandable or legible for the market, that is, a story that allows the potential investor to better understand the risks, benefits, and opportunities of the company it represents. Identifying the economic variables that affect it, understanding the needs of investors, and, finally, being clear about current regulatory requirements.

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There are some challenges to be considered when building on IR:

1. Segment communication policies according to the type of audience and adapt the message at all times.
2. Manage the digital tools in an optimal way, to reach a wider audience, in a more immediate way and with more relevant content.
3. Advance in the development of metrics or elements that facilitate the analysis of profitability and efficiency that these investor relations figures provide to companies.
4. Listen to the market and the content it demands, which is increasingly focused on non-financial information and integrated reports with content more related to corporate strategy, business, or social responsibility.

That’s why some of the best practices in this topic are:

1. Always respond with clear and precise information.
2. Have available communication channels adapted to the needs of investors, shareholders, the media, and the general public.
3. Have relevant information.
4. Transparently transmit the Company's strategy, sustainability management, and performance.

Lastly, IR is crucial to keep the whole organization, partners, and investors aligned with objectives, goals, mission, culture, values, etc. To summarize the topic, IR is accountable for:

• Enabling the company to achieve the optimum share price that reflects the?fundamental value?of the company
• Representing the company to investors and representing investors to the company
• Providing financial information to investors (retail and institutional) in a timely and accurate way
• Providing non-financial data to support company valuations
• Observing the rules of securities commissions and stock exchanges
• *Non-*aggressive sales promotion or “closing”
• Presenting investor feedback to company management and the board
• Building receptive capital markets for future financing at favourable terms

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Bridges (www.bridgesbiz.llc) partners with companies to evaluate their business model from an internal and external perspective, to help them define and articulate their value proposition to the market, to proactively identify vulnerabilities and mitigate risks, and to protect the company’s reputation and best interest throughout an activist threat.

Our team offers all-encompassing communications support on a broad range of transactions, including traditional M&A, hostile takeovers, spin-offs, divestitures, LBOs, and other complex financial undertakings.

Please consider a call with us to understand your needs:?https://tidycal.com/bridgesbiz/45-min

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