The core objective of any company is to create value for its shareholders. And in the case of listed companies or those preparing for an IPO, the investor relations department is of crucial importance in achieving this objective.
MZ supports its clients through the three fundamental pillars of any investor relations program:
Managing market expectations (analysts, journalists and opinion makers);
Managing the shareholder base;
Providing strategic input (actions to reduce value gaps).
MZ has a unique business model based on integrated services that combines structured planning with the efficient execution of all its phases while staying focused on value creation.
I) INVESTOR RELATIONS STRATEGY
MZ develops strategic investor relations programs, integrating the financial, communication, marketing and legal areas to establish an effective dialog between companies and the financial community and ensure that its client‘s securities are fairly valued. These programs feature measurable objectives for companies and MZ’s contribution is also quantifiable.
MZ’s senior consultants advise companies on structuring global IR programs and assessing the impact of business strategies on capital markets.
Critical review of business plans and development of valuation models;
Development of investment cases and competitive positioning;
Training of senior executives;
Development of integrated communication plans;
M&A transactions and execution in crisis scenarios.
Global IR Programs
The programs developed by MZ ensure that management‘s vision, expectations and investment story and the company‘s competitive advantages (i.e. "why invest in the company and why invest now?") are communicated in such a way as to maximize market perception and increase the stock‘s demand and liquidity.
Development of IR programs aligned with the company‘s business plan and competitive positioning;
Training of senior executives for conference calls and pitching sales to investors;
Creation of a database of investors and analysts and a meeting schedule;
Drafting and revision of communications materials (releases, reports, speeches, etc.);
Encouraging sell-side analysts to cover the stock;
Schedule of activities for implementing the IR program;
Setting of concrete objectives and introduction of continuous improvements;
Drafting of reports monitoring value creation (management of expectations and the shareholder base).
IR and Communication Programs for the Pre-IPO phase and Follow-On Offerings
Ideally, IR programs for companies in the process of going public begin well ahead of the kick-off meeting with the bank syndicate and lawyers.
Guidance on legal and advisable investor relations requirements;
Support for developing and revising the business plan and model;
Creation of the management presentation and training of senior executives;
Caution when dealing with the media during the pre-IPO phase;
Roadshow logistics and listing ceremonies at the stock exchanges;
Development of the IR plan for the first post-listing year and training of the IR team;
Creation of the IR website and initial materials;
Filings with regulatory agencies (HTML and XBRL);
Translation of documents.
Consulting Services for the Board of Directors
MZ provides strategic advisory services to directors on the changes a company experiences when it goes public, and on how to assess the performance of IR efforts and create value for shareholders from the standpoint of the capital markets (including financing, M&A, stock buyback programs, dividend programs and legal aspects).
MZ prepares senior executives to administer crisis situations and effectively manage the company‘s relationship with the capital markets and media. The creation of a crisis manual for potential adverse situations and pre-approved actions minimizes damage and reinforces the client‘s positive image during the crisis.
Disclosure and Guidance
The development of an effective disclosure policy is fundamental to any IR program. MZ also helps determine the guidance strategy and implement the disclosure infrastructure in order to comply with the applicable legislation and maximize exposure with investors.
Corporate governance studies help give management a better understanding of best practices and potential gaps with investment peers, and of the importance of these practices to the capital markets. MZ provides its proprietary tool (corporate governance portal) to support board members in their primary responsibilities, facilitating secure interaction, the flow of information between committees and directors and the management of activities and agendas.
Managing investor and analyst perceptions of the company and/or industry is essential for maintaining effective competitive positioning and implementing an efficient IR program.
Identification of value drivers;
Understanding their competitive positioning/advantages and SWOT analysis;
Dominating the main investment characteristics and the investors who trade the stock;
Learning how the company and its peers communicate and how they are perceived.
Capital Market Training
Management‘s ability to communicate effectively with the capital markets is a critical element of any successful IR program.
Improvement of presentation techniques (training for spokespersons);
Practical preparation of senior executives for maintaining effective relations with investors;
Solid understanding of financial market dynamics;
Efficient management of Q&A sessions;
Preparation for contingencies and challenges.
II) MARKET INTELLIGENCE
With thousands of companies seeking the attention of investors and given the reduced number of sell-side analysts and associated research reports issuing stock recommendations, MZ helps its clients identify new investors and attract and retain the shareholder base.
Who owns stock in the company and in its peers? Why? MZ has a deep understanding of the characteristics of the investment market and goes far beyond merely identifying the shareholders, identifying the main funds that trade the stocks of the client and its peers, as well as what these key investors expect in terms of performance and how they react to stock movements and liquidity.
Why should investors buy stock in your company? Why now? MZ adjusts the investment story for each key investor to attract them to the shareholder base and ensure effective communications, while training senior executives to convey the story and provide feedback on the meetings as well as on any post-meeting buying and selling activity.
MZ's world-class stock surveillance service provides real-time insight into price performance and institutional trading activity in the stock of a publicly traded company with proprietary Daily Market Alert and Monthly Market Alert. For more information, please visit MZIlios website: www.mzilios.com
Ideal Positioning and Investment Stories
MZ’s team of specialists helps clients to develop a better understand of and adjust their investment stories within the current dynamics of their industries. MZ helps to enhance the consistent communication of this message and ensure that it is well understood by investors.
Understanding the financial market‘s perception of a company and its peers is the starting point for a solid IR program. The studies developed by MZ are qualitative and quantitative, and depending on the specific case, can also include the involvement of directors, enabling effective identification of the relative positioning and the corporate objectives to be achieved.
Business strategy and competitive advantages;
Earnings disclosure events;
Succession of directors and executive officers;
III) EXECUTION OF IR PROGRAMS
One of MZ’s main advantages over its competitors is its unique ability to offer one-stop-shop solutions with an excellent cost-benefit ratio. As each specific need arises, clients can count on MZ’s experienced professionals to implement tactical actions, allowing them to focus on what is truly important for IR professionals: creating value by ensuring a productive last mile, in other words: visiting the right investors, conveying a well structured and consistent message, standing out from its peers and attracting and retaining shareholders that really make a difference.
Construction and maintenance of the client‘s entire platform for investor communications;
Creation of all communication materials, including support for drafting the MD&A;
Development, hosting and maintenance of superior IR websites;
CRM services related to investor relations;
General coordination of roadshows and other investor events;
Relations with the financial and business media;
Analysis of the effectiveness of actions;
Filing of documents with regulatory agencies;
Coordinated disclosure of information;
Creation of presentations;
Programs targeting retail investors;
Company Days and Analyst Days;
Active marketing of stocks and bonds to reduce the company‘s perceived risk;
Translation of financial and legal documents;
Legal publications and other notices in financial newspapers and periodicals.