What does a good 3rd party Investor Relations co do?
Hello there guest! Want to join in on the conversation? Login or register for a forums account by visiting this link.
Posted: Saturday Aug 12 3:43:16PM 2006
It depends if they have a "team" of IR professionals or if it is a one-man show.
Honestly, I have not met many individual IR people worth that much. A few firms, yes, but only if they are providing more than just shareholder communication services.
Most decent IR guys charge $5-8K per month.
Posted: Saturday Aug 12 12:00:02PM 2006
Dundee - what would a good IR firm be worth to a small cap company? 10K a month?
Posted: Saturday Aug 12 10:08:15AM 2006
A good IR firm or person can play many important roles:
1. providing a financially literate and market savy connection to analysts, the brokerage community, and sophisticated investors
2. reduce burden on management to meet shareholder communicaitons needs thus allowing them to focus their attention of growing business
3. expand awareness of the company and its investmet highlights to investors thereby improving liquidity and helpting to establish a fair market valuation for the stock. In the event that the stock had been undervalued, a more fair price may allow the company to expand with less dilution etc.
4. assist the company in raising money for expansion
5. provide advice respect to transactions that are likely to require shareholder approval
This all said, I think about 75% of IR "professionals" fall dramatically short of all of these objectives. However, there are some out there that are worth their weight in gold.
Posted: Friday Aug 4 7:54:34AM 2006
Is it money well spend for a company to hire one of these IR firms? What services do they provide?