Our associates at Synergy work with your company to create a customized Investor Relation strategy and to help it refine the story it wishes to tell analysts and investors. That in part may involve persuading the company management to provide additional and clearer public disclosures of financial and non-financial information, beyond what is required by the Securities and Exchange Commission.
For small companies, which in the best of times struggle to be visible to potential investors, tighter regulations in the aftermath of corporate scandals have made the IR function even more crucial. Most of these companies are unable to afford in-house IR specialists and are therefore turning to investor relations consultants to help them navigate the more complex communication process created by reform measures such as Regulation FD, which prohibits selective disclosure of material nonpublic information, and the sweeping Sarbanes-Oxley Act.
Companies need to be more attentive than ever not only to what they tell investors but how they convey that information so they don't break the rules. At the same time both regulations are viewed as having decreased analysts' interest in following small- and mid-cap firms, making it important to have an effective way to attract that attention.
Analysts at Wall Street brokerage firms who once tracked small companies in hopes of attracting investment banking business cannot do that anymore for fear of raising conflict of interest questions. Companies in turn cannot favor selected analysts in releasing corporate information. The end result is that smaller companies are having a harder time gaining analysts' attention.
Synergy also arranges meetings between the company management and large institutional investors, or the "buy side," as well as analysts at brokerages, or the "sell side." A lot of investors of small-cap stocks are making are bets on the management, not on the financials.
When you are hiring an IR firm, and making a commitment to be there to answer questions from investors and analysts. If you disappear when things go bad, you will lose these investors and never get a chance to do this again. Hiring Synergy is all about creating a relationship that allows us to can get your company’s story out to the largest audience of potential investors.