Is it time for your next financial market day?

If you’re a CEO or lead an investor relations team, you’ve probably thought of hosting an event for investors and analysts to showcase your company’s expertise and update them on your latest strategic developments. . And then, maybe, you got discouraged. A capital markets day? Oh good? Won’t it take too long or cost too much? What if we waited to have some great news to share?

In fact, these are limiting views: Investors always appreciate an inside look at how a company works, and they will always give credit to a company for building a point of contact with them outside of the imposed timeline.

What approach box help you decide?

In fact, the first thing you need for Capital Markets Days is a mindset shift. Stop thinking of them as a place to defend your advice. Instead, try to put yourself in an investor’s shoes. When was the last time they heard your key strategic messages? Don’t you think they would appreciate an update on your equity story?

Of course, your schedule is tight and your budget is limited. Of course, financial declarations are increasingly regulated and this does not make your life easier. But the opportunity to build a cohesive narrative around your overall strategy shouldn’t be overlooked. Nor should the ability to bring together key contributors to your equity story. Especially after the pandemic, when we have all learned the value of informal dialogue.

With that in mind, start by asking yourself a few key questions:

  • How long has it been since you contacted your investors informally? If it’s been more than two years, it’s time to think about it.
  • Has the regulation or economic climate of your industry changed in the past two years? Did you make a recent acquisition? If so, an update would be very valuable.
  • How long until the end date of your current strategic plan? An update, using the plan as a framework, is always very useful and there is always something to say.
  • Is there a part of your business that doesn’t get the recognition it deserves? A key market that investors struggle to properly appreciate? Lighting it up is a good idea.

Make the most of your Capital Markets Day by following a few simple rules

  • Establish the scope of your event before you start planning. How much do you have to say? What “signals” are you looking to send or receive?
  • Carefully define your SOCO (Single Overriding Communications Objective) and, from there, apply Barbara Minto’s pyramid principle to effectively communicate your key messages. Make sure your presentations are designed to have an impact: state your main points first, then expand on your key points, followed by examples and supporting stories.
  • Dedicate the right resources to preparing for the event: Only one senior person should be responsible and have the power to make decisions about the event agenda. At the same time, a junior person can sort out logistical issues as they unfold.
  • Plan well: allow at least 2 months. Make sure it doesn’t conflict with quiet times or important announcements.
  • Hire the right partner to help you choose and structure your key messages.
  • Ask for feedback from all attendees (investors, contributors, organizing team) after the event. Be sure to allow respondents to include their responses verbatim. Carefully analyze feedback to understand where your areas for improvement lie. Next time you will do even better!

Still wondering if you need a Capital Markets Day? … If so, the answer is probably yes.