Fractional Investor Relations (IR)

Investor relations (IR) is a critical function for all public companies. However, at times, resources are not available for a full-time investor relations officer (IRO). In this case, the responsibilities often fall to executives who should be focusing their time on running the business to deliver on strategic goals.

In this article, Marissa Vidaurri, VP of Investor Relations and Communications Services, shares the importance of IR and how fractional IR support can be a valuable asset for companies in this situation.

It’s time to invest in your investors

There are numerous benefits to leveraging experienced investor relations leadership and a dedicated program:

• Credibility: A dedicated investor relations expert can elevate an IR program and enhance credibility with shareholders. Serving as the connector between investors and the C-suite, investor relations can better craft messages that resonate with a pulse on perception from this critical audience.
• Differentiation: Investors don’t evaluate companies in a silo; they compare and assess who will rise to the top within an industry. If your investor communications aren’t differentiated, they’ll quickly move on to more attractive alternatives.
• Investor Confidence: IR is more than just about the numbers. Shareholders can easily read the financial results. What they need is a credible contact to share the story behind the numbers. The transparency into tailwinds, headwinds, and strategy to pivot when needed is what instill confidence in investors.

“At that point, it’s really a partnership. IR doesn’t work in a silo on its own; it takes a partnership with the CEO and CFO to really understand their long-term vision for the company and communicate that with the investor base.”

Investor relations is truly a specialized profession combining finance and communications at all levels of the organization. This includes both internal and external stakeholders to ensure credible and consistent communications.

IROs are strategic communicators, trustworthy, credible, adaptable, and visionary to lead investors to the long-term growth opportunities of the business.

Who can benefit from fractional IR support?

Plenty of companies understand the value of dedicated investor relations, but they don’t yet have the resources for a full-time IRO.

Some of these businesses are nearing IPO aspiration. Building your IR program in advance of going public sets up your executives and the business for success.

Other times, businesses may have an IRO on leave or are in the midst of recruiting a new hire. Fractional support can assist with keeping the lights on and ensuring all responsibilities continue in a smooth and efficient manner.

Companies in these situations can still excel with the specialized help of a fractional IRO or outsourced investor relations support.

Process for successful fractional IR

A fractional IR partnership begins with building a foundational understanding. This includes:

• Due dive into the business strategy, leadership, and current investor narrative
• Building relationships with the CEO, CFO, and the entire executive leadership team to become immersed in the business strategy
• Pulse-check of the current shareholder base and sell-side analysts as a baseline
• Evaluation of the competition in the market
• Enhancement of the investor narrative to optimize for consistency and credibility
• Review of internal and external communications to align with investor relations forums like earnings calls and investor conferences

Even if your company has had an IR program for some time, a fractional IRO brings a valuable outside-in perspective and will help you build the foundations you need for a best-in-class program. After the initial onboarding, your fractional IRO can roll back into more of a day-to-day maintenance level as they build on the foundations you have built together.

Build your IR program with CCN

Call (512) 503-7767 or email Marissa to get started.