What is a non-deal roadshow? What Are Its Benefits? For every organization, investors are the backbone. With the end of the financial year, the companies start working on the needs of the current investors and try to explain the plans to continue the relationship. Besides, they start looking for potential investors. They start working on the key messages they want to deliver and provide corporate access to the investors. Most companies establish a corporate access team to ensure that things go smoothly and they stay connected with the potential investors. The team plan out the things and arrange several meeting and conferences to communicate with the investors. They also keep opportunities open for new investors to keep their requirements. Amongst so many tricks and techniques, the one that’s playing an effective role in investor targeting is a non-deal roadshow.
A Non-deal Roadshow As the name suggests, there is nothing for sale in it. It’s just an opportunity for the organizations to keep their words before the investors and develop an interest in what is coming up for sale or service in an upcoming financial year. It also explains the contribution of the investors and the way it’s going to be utilized.
Working of a non-deal roadshow A financial manager of a company works in coordination with a broker to organize and successfully run a roadshow. They travel to pre-decided destinations over a given period. These are not the people, who take over the responsibility of a non-deal roadshow; other members from the organization can travel along. Based on the status of the organization, a roadshow is organized. It can either be a large-scale, multimedia presentation or small-scale event.
Topics discussed in a non-deal roadshow There is a variety of topics covered in a non-deal roadshow, but the focus is on the interest of the potential buyers and things that would help in trust-building. So, the major points are: Important information like earning report, company history, and current assets Company’s vision for the future and plans to achieve the same Current performance of the company and problems, if any
Benefits of a Non-deal roadshow
With transparency in the communication and corporate access to the investors, a non-deal roadshow helps in strengthening the relationship. Investors do not like to stay in dark and wish to know the actual status of the organization to ensure their investment is secured.
A detailed presentation prepared for a non-deal roadshow helps the investors to know your company’s practices. It reduces the communication gap by filling up all their understanding gaps. Also, it helps you understand the reasons for the investors to invest in your shares.