Why an “Analyst Day” Makes a Difference

Volume 24/1

With travel budgets constrained and a decline in the number of brokerage-sponsored events due primarily to the economy, the opportunities for corporate managers to present their stories to the investment community have diminished.  Of course, you can schedule a series of one-on-one meetings and race around town; however, an Analyst Day might be an idea worth considering.

In addition to reaching a wide audience, Analyst Days offer a number of advantages in that your attendees can gain in-depth insights into key facets of your company, its strategic plans, developments and management team. 

Careful planning is necessary to maximize the effectiveness of an Analyst Day.  Some thoughts to consider:

  • “Location, location, location” — Depending upon the size and location of the company, hosting an Analyst Day at corporate headquarters is recommended as this will enable you to easily stage a variety of events (e.g., intricate product demonstrations, facility tours, etc.).  However, if a remote headquarters location poses logistical nightmares, you can opt for a hotel in a major market (a field trip to an interesting operation — if applicable — could be arranged as part of the day’s events).

 

  • Theme development —  It is a good idea to have an overarching theme for your Analyst Day, one which serves to highlight a key area of corporate focus (e.g., international expansion, new technological development, turnaround strategies, etc.).  A discussion with some of your company’s institutional holders and sell-side analysts could be helpful in this regard — this could be done informally or formally, e.g. a perception study. It is also a good idea to “poll” some of your attendees as to what they would be interested in learning more about.

 

  • The program — The presenters should include your CEO, CFO as well as subsidiary heads.  If applicable, your chief R&D or science officer should present as well.  You might wish to consider the presentation of a case history by a customer to demonstrate the effectiveness of your company’s product or service.  Once the speakers are set and the presentations are prepared, rehearsals should be conducted.  The day before the event, it is advisable to conduct a “full-dress rehearsal” on-site to insure that all goes as smoothly as possible.
     
  • Invitation lists — Obviously, you want your institutional shareholders and covering analysts to attend.  You should also reach out to potential institutional shareholders as well as those sell-siders who do not cover the company.  Your current analysts as well as your outside investor relations counsel can be helpful in identifying potential institutional owners through a targeting program. About three months in advance, send a “Save the Date” advisory to your lists; a press release announcing the event should follow while a more detailed invitation and agenda can be sent about a month in advance.

 

  • Webcast — The wonders of modern technology enable companies to webcast such events; presentation materials can be hosted on the company’s website.

 

  • Presentation materials — Most companies opt for binders containing the various presentations.  These can be distributed on the day of the meeting.  In addition, if yours is a consumer products company you should have products on hand to distribute to the attendees.  Consider having television ads looped prior to the start of the event.

 

  • Extend the life of the Analyst Day — Post event materials such as presentations, fact sheets and videos on the company’s IR home page.  Post your event video on YouTube, too.

 

  • Post-event feedback — Your company’s outside IR counsel can reach out to a cross-section of attendees — both buy- and sell-side — to determine their views of the event.  While many companies make use of quantitative surveys, interviewing attendees to garner qualitative assessments can be quite helpful in determining the success of an event.  Of course, you should monitor the institutional filings to see if any changes occur following the event.

 

Successful Analyst Days require a great degree of advance planning and a tremendous commitment of time from all those involved.  However, hosting an Analyst Day can pay handsome dividends in the form of renewed investor interest and the addition of new institutional owners.
 

Successful Analyst Day Countdown
 

Three months before

  • Select market and venue
  • Develop mailing / target lists
  • Send “Save the Date” advisories

 

90 days before

  • Develop theme / messages
  • Distribute press release announcing your event
  • Speaker selection and presentation content

 

30 days before

  • Send official invite and agenda
  • Develop speaking points for each presentation
  • Secure vendors for A/V and webcasting
  • Review logistics

 

Day before

  • Rehearse management
  • All-hands meeting to go over last minute details

 

Event

  • Webcast
  • Staff the event

 

Post-event

  • Begin process for obtaining investor feedback
  • Review transcripts of event
  • Post event materials on Website