10:30 a.m. Pacific standard time
Investor communication strategies to maximize IPO valuation
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.
Editorial & Research Director
Neil Stewart, Editorial & Research Director, is a New York-based editor and conference leader for both IR Magazine and its sister publication, Corporate Secretary. He is involved in the investor surveys behind the IR Magazine Awards worldwide as well as practice surveys of investor relations and governance professionals. Neil first joined IR Magazine in 1996 and helped found Corporate Secretary in 2002. He has chaired over 80 IR Magazine think tanks and conferences in North America, Europe, Asia, Africa and Australia.
Jacqueline A. Kelley
Partner, Ernst & Young LLP
EY Global and Americas IPO Markets Leader
Jackie is an Ernst & Young LLP partner with over 25 years of advisory and audit experience, focusing on IPO readiness, business process improvement, governance, internal controls, risk management, internal audits and financial audits. Jackie currently serves as the EY Global and Americas IPO Markets Leader with a team of IPO leaders throughout North and South America and Israel, responsible for over 400 C-suite executive strategy sessions focused on IPO readiness and post-IPO effectiveness.
Chief Financial Officer
Jack is currently CFO of GoPro, a provider of wearable capture devices which he helped take public in 2014, raising over $490 million. From 2011 to 2013, Jack was employed by Qualcomm, where he served as SVP Corporate Development and General Manager of Qualcomm Atheros. From 2003 until the company’s $3.6 billion acquisition by Qualcomm in 2011, Jack served in a variety of positions and most recently as Atheros’ CFO and SVP of Corporate Development. In 2004, Jack helped take Atheros public, raising $145 million in capital as part of the IPO. During his tenure, Atheros grew to over $1 billion in revenue and conducted several acquisitions throughout North America and Asia. Jack previously held executive positions at NetRatings, which he took public in 1999, Apptitude and Electronics for Imaging. Jack is a CPA and holds a BS in Commerce from Santa Clara University. He serves on the Board of Directors at TubeMogul (NASDAQ: TUBE) and at Silicon Labs (NASDAQ: SLAB).
Robert H. McCooey, Jr.
Senior Vice President
Robert H. McCooey, Jr. is a Senior Vice President of NASDAQ OMX and is responsible for Relationship Management with NASDAQ’s 2,800 listed companies. Previously, Mr. McCooey ran New Listings and the Capital Markets Group at NASDAQ. In this role, Mr. McCooey managed NASDAQ’s new listings efforts domestically, in the Americas and throughout the Asia Pacific region. Prior to joining The NASDAQ Stock Market, Inc., Mr. McCooey founded and served as the Chief Executive Officer of The Griswold Company from 1988 until 2006. He was a member of the New York Stock Exchange Board of Executives from 2003 to 2006.
Dominic transitioned three disruptive start-ups into some of the fastest-growing public technology companies with a market capitalization over $50 billion. Raising nearly $1.2 billion to diversify each company’s VC investor base, the capital provided fuel for each company’s high-growth potential, product innovation, international expansion and M&A opportunities. Dominic serves as the Vice President of Corporate Finance and Investor Relations for Pandora. Prior to Pandora, Dominic represented SuccessFactors and salesforce.com in similar roles over the last decade. Dominic graduated from the University of Notre Dame.
Scott Skidmore is a Managing Director for the Industrial, Real Estate, Gaming & Lodging Equity Origination effort at Barclays. He has over 16 years of investment banking experience. Mr. Skidmore joined Barclays (formerly Lehman Brothers) in September 2007. Prior to joining Barclays, Mr. Skidmore spent approximately nine years in investment banking coverage and ECM at JPMorgan where he focused on the Industrial, Real Estate and Natural Resource sectors. He’s worked on a variety of equity, equity-linked, M&A and fixed income transactions for both public and private companies. Mr. Skidmore has completed well over 100 equity/equity-linked transactions in his career.