10:30 a.m. Pacific standard time

Investor communication strategies to maximize IPO valuation

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Session recap

Investor communication strategies to maximize IPO valuation

Driving your IPO valuation starts with getting investors to believe in your story

Getting investors excited about your company has as much to do with telling your company’s story in a compelling fashion as it does with valuations and stock prices, according to panelists at the “Investor communication strategies to maximize IPO valuation” session.

Trying to get Wall Street used to unfamiliar revenue models “is something that pays off down the road,” said Dominic Paschel of Pandora, who advised the audience to focus on finding analysts “who can articulate the complexities of your business model” to potential investors.

Getting investors to believe in the company is critical, said Jack Lazar of GoPro: “You need them to understand how great your business is, and if you don’t believe it, no one else will.” Lazar also noted that many companies need to be more creative when they develop roadshow videos. “If you wouldn’t market your products that way, then why sell your stock that way?” he asked.

NASDAQ’s Robert H. McCooey, Jr., encouraged the audience to take advantage of provisions in the JOBS Act of 2012 that allow them to test the waters and prepare for communicating with investors before they go public. “Companies need to be aware of what it means to be a public company and the cultural shift that’s going to happen,” McCooey said, particularly in terms of reporting earnings numbers to investors.

Jacqueline A. Kelley, EY Global and Americas IPO Markets Leader, agreed, adding that executives need to decide “if they are ready to be a public company. Do they have a growth story and a predictable business model?”

Executives also need to ask themselves why they are going public, said Scott Skidmore of Barclays. While driving growth or delivering liquidity to investors are valid reasons, he said, “just saying you want to become a public company” is not.

Moderator
Neil Stewart speaks at EY Strategic Growth Forum

Neil Stewart
Editorial & Research Director
IR Magazine

 

Speakers
Jacqueline A. Kelley speaks at EY Strategic Growth Forum

Jacqueline A. Kelley
Partner, Ernst & Young LLP
EY Global and Americas IPO Markets Leader

 

Jack Lazar speaks at EY Strategic Growth Forum

Jack Lazar
Chief Financial Officer
GoPro

 

Robert H. McCooey, Jr. speaks at EY Strategic Growth Forum

Robert H. McCooey, Jr.
Senior Vice President
NASDAQ OMX

 

Dominic Paschel speaks at EY Strategic Growth Forum

Dominic Paschel
Vice President
Pandora

 

Scott Skidmore speaks at EY Strategic Growth Forum

Scott Skidmore
Managing Director
Barclays