Pre-deal communication strategies

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Session recap: Strategies on the road to the IPO

On the road to an IPO, companies need to carefully plot their communications, but the best approach varies as widely as the audience, a panel of C-suite executives and top transaction advisors revealed during the session “Pre-deal communications strategies.”

Jonathan Art, Portfolio Manager and Senior Investment Analyst, Federated Kaufmann Fund, said he likes to get to know the nuances of a business to develop the conviction to invest. “The earlier you get to speak to a company, the better,” he said.

The road show is an “elevator test,” said Scott Skidmore, Managing Director, Barclays. “Can you explain your business in a very concise way in a short period of time?”

But companies can’t neglect what will happen in the long run, post-IPO. “Once you are public, you need to focus on running your business and delivering what you promised to those investors,” Skidmore said.In the early days of an IPO, discretion is key. "It's best to have as buttoned-up an IPO process as you can, keeping the communications under control," said Kenn Guersney, Partner with Cooley LLP. "That means for people outside the company, it's strictly need to know, and that seems pretty clear. For employees, that's an issue that's not quite as cut and dry these days as it used to be."

Will West, Chairman, Co-Founder and CSO of Control4, which just finished an IPO, wondered why a company would do anything other than file confidentially under the JOBS Act. “It’s a huge advantage to be able to sort of operate under cover as you’re getting ready and not feel like you’ve got to get everything perfect, then file," he said.

Pre-deal communication strategies

 

Moderator
Andrew Jordan III speaks at EY Strategic Growth Forum

Andrew “AJ” Jordan III
Strategic Growth Markets Leader East Central Region
Ernst & Young LLP

 
Speakers

 

Jonathan Art speaks at EY Strategic Growth Forum

Jonathan Art
Portfolio Manager and Senior Investment Analyst
Federated Kaufmann Fund

 
Kenn Guernsey speaks at EY Strategic Growth Forum

Kenn Guernsey
Partner
Cooley LLP

 
Scott Skidmore speaks at EY Strategic Growth Forum

Scott Skidmore
Managing Director
Barclays

 
Will West speaks at EY Strategic Growth Forum

Will West
Chairman, Co-Founder, CSO
Control4