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Capital Markets Self-Evaluation

Leverage MCI’s Capital Markets Self-Evaluation tool to uncover hidden deficiencies in your investor relationship management platform. These hard-to-detect deficiencies may be silent killers of your company’s valuation.

Capital Markets Self-Evaluation Tool

Are your company's systems investment grade?

The Capital Markets Self-Evaluation will help your team diagnose hidden deficiencies that are quietly killing your valuation. Our team regularly finds serious deficiencies in the investor communication and investor relationship management systems of companies of almost every size. Your company may have the best story in the capital markets. But if the story isn’t reaching investors, it’s the same as winking at someone in the dark. You may know what you’re doing, but nobody else does.

Investor Relations - News Releases
Evaluating your

Communication Systems

The most important question you can ask is whether the company’s investor communications are actually going where you think they are going. In almost every company we have worked with, we find significant breaks in their communication chains. This includes:

  • Dysfunctional newswires;
  • Conference call and webcast malfunctions;
  • Blacklisted email servers; and
  • Universal unsubscribes that remove important followers without their knowledge.

The first place to start is to ask the company’s email news alert service provider for the number of subscription requests received, the number of active subscribers, as well as the delivery and read rates of your email news alert. At one company, we found that more than 90% of the subscription requests were never activated, much to the growing frustration of investors who were interested in following the story. In another instance, we found that key analysts were not receiving updates because they had been unsubscribed from all emails from the service provider, rather than unsubscribed from a specific company… something we call a universal unsubscribe. The damage this can do to a key capital market relationship is significant. To learn more…

Capital Markets Self-Evaluation
Evaluating your

Relationship Management Systems

If you’re new to the role, do you know the quality and frequency of your company’s touch points with the capital markets? Before any outreach it’s important to understand where you’re starting from. You should be able to have a system generated report at your fingertips that details every interaction the company has had with the capital markets in the last two years. In addition, this report, should identify which broker dealers have generated which meetings, and be able to assess how new investor leads are converting to real investment.

Once you have this in hand, and understand the health of the company’s capital market relationships, you can initiate your introductory road show. If you need help in establishing your company’s contact history, or setting up your introductory roadshow…

Capital Markets Self-Evaluation

Building a Premium Valuation After the Capital Markets Self-Evaluation

According to a recent report from S&P Market Intelligence, best-in-class investor relations drives a 34% valuation premium relative to peer companies. The Capital Markets Self-Evaluation tool will ensure the foundational systems are in place on which to build a premium valuation. Then, you can use the fair valuation framework, encapsulated by the Four Cs of a Fair Valuation, to layer in the various components of a premium valuation. In our experience, solid execution by management, combined with sound messaging, branding, and engagement strategies can spur a significant turnaround in a company’s valuation. For example, we helped turnaround Parkland (TSX:PKI) and Stantec (NYSE/TSX:STN) to deliver valuation improvements of 197% and 155% respectively.

S&P Market Intelligence Report

1

Credible

Credibility is the foundation of a company’s valuation. Companies and management teams build trust in the marketplace through credible practices that protect and enhance their reputation. Companies should ensure their communications are educational, set realistic expectations, and avoid promotion.

2

Clear

Companies enhance investor understanding and resolve market misperceptions through straightforward communications that use language that is simple, clear, and easily understood by all audiences. Clear communication stays out of the weeds, translates technical terms to lay terms and delivers the big picture.

3

Compelling

Compelling investment grade materials and events including investor presentations, corporate videos, investor websites, investor webcasts, and other investor mediums. These should be designed to help your company stand above the crowd in the capital markets.

4

Connected

Connecting your company’s clear, credible, and compelling message to the right people in the capital markets is the final link in achieving a fair valuation. This is the last step in delivering your company’s story, and is often where the connection with the buy-side is incomplete or broken.