How to prepare a team for IPO: Tips for success
August 10, 2022
Your IPO roadshow is a critical component of a successful Initial Public Offering (IPO). It is an opportunity for your leadership team to showcase their vision, strategy, and financial performance to potential investors.
A well-executed roadshow will generate interest and excitement among investors and result in a successful IPO. From our 15 years experience preparing teams for IPO roadshows, here are some top tips:
If you are preparing your IPO presentation, then you’ll want to do everything to make it a success.
We’ve been advising IPOs for 15 years and in that time we have seen the difference between a successful and unsuccessful float.
When you prepare an IPO presentation you cannot put too much effort into polishing your presentation.
That means polishing how your team handles each investor meeting (not just creating prettier slides)
Successful IPOs mean clear, simple & consistent investor meetings
Looking across the dozens of deals we have supported, we’ve identified six key themes:
Be simple and clear
Address investor concerns
Paint a picture of the future
Show the quality of the team
PREPARING FOR THE IPO PROCESS – VIDEO TRANSCRIPT
For any management team, the IPO process is probably one of the most gruelling processes that you ever go through.
There’s so much going on: over a six-month period, you might be just having two- or three-hours sleep per night. I don’t envy anyone in a management team having to do it.
If you’re doing five meetings a day, you just get brain fog. You don’t know whether you answered a question five minutes ago or five hours ago.
So, how do you prepare properly?
- It’s about practising, lots of practice, so that on the day you know you’ve ironed out all the difficulties.
- It’s about having a really simple story, the easier the story is, the more likely you’ll get it across well.
- And then it’s about looking really good as a team: how you interact, how that works and that’s when we practise teams over and over and again. But my gosh you get a lot of the added value from doing that. And that’s how you prepare a management team for an IPO.
When your team is preparing for an IPO, it can be a very stressful time and very often we see people preparing by making huge lists of possible questions that investors might ask and then hugely detailed answers. I work with a lot of senior managers of businesses who are IPOing who find that overwhelming.
It’s just not really possible to memorise every single possible question and every single possible answer. So, often our approach is to focus on what the really important messages are that we think are going to press investors buttons.
And then we focus on making sure that every question is an access point to those messages. And of course, you know what the negatives are likely to be, negative tough questions. So, prepare for those, make sure you’ve got ways to leave them, that leave a positive thought in investors’ minds.
People sometimes ask us how you should prepare a team for IPO. There are lots of things.
- You need the right presentation
- You need the right materials
- You also need to look like a team.
One of the biggest problems for management teams is when investors can tell that they’re not really a team, they’re not operating like a team. So, when we do our role play for people who are preparing for an IPO, we get the team together in a very realistic scenario, we act the role of prospective investors, and we get them to pitch to us.
Like this, we can see them acting like a team, they can interrelate with each other and then when they go out and meet real investors, it works.
Develop a Compelling Story
The first step in preparing for an IPO roadshow is to develop a compelling equity story that resonates with potential investors. This involves crafting a narrative that highlights the company’s strengths, competitive advantages, and growth potential. The story should be supported by data, financial metrics, and industry trends. It is important to create a clear and concise message that investors can easily understand, remember and, most importantly, repeat.
Create a Strong Presentation
A strong presentation is essential for a successful IPO roadshow. The presentation should be visually appealing, easy to follow, and engaging. It should include key data points, a simple description of your success story, and industry comparisons. The presentation should be tailored to the audience, highlighting the most relevant information for each group of investors. It is also important to rehearse the presentation thoroughly to ensure that it flows smoothly and is delivered with confidence.
Identify the Key Players
The key players in an IPO roadshow are the CEO, CFO, and other members of the leadership team. It is important to identify the key players and ensure that they are prepared to answer questions and engage with investors. Each team member should have a clear understanding of their role in the roadshow and be able to articulate the company’s vision and strategy. And they should each be well prepared. That’s where IPO coaching adds huge value.
Conduct Mock Meetings
Mock meetings are an effective way to prepare for an IPO roadshow. These meetings simulate the format and style of the actual meetings with potential investors. The purpose of these meetings is to identify any weaknesses in the presentation or messaging and address them before the actual roadshow. It is also an opportunity to get feedback from the team and make any necessary adjustments. The best teams spend weeks getting these meetings right. The time you invest beforehand will pay off handsomely when you meet investors.
Build Relationships with Investors
The IPO roadshow is not only an opportunity to present the company to potential investors but also to build relationships with them. It is important to engage with investors, listen to their questions and concerns, and provide thoughtful and informative responses. Building a strong relationship with investors can help to generate interest and support for the IPO and create long-term partnerships.
Plan for Contingencies
Despite careful planning and preparation, unexpected events can occur during an IPO roadshow. It is important to have a plan in place for contingencies such as technical difficulties, schedule changes, or unforeseen questions from investors. A contingency plan can help to minimise disruptions and ensure that the roadshow runs smoothly.
If you want help from an experienced team who have spend over 15 years preparing managements for IPOs, then get in touch today.
About Benjamin Ball Associates
At Benjamin Ball Associates, we help clients to communicate better. You get presentation coaching for executives.
Over 15+ years the award-winning BBA team has coached thousands of senior executives globally to present powerfully. You get access to a transformational toolbox of techniques to help you become a clear, confident communicator.
We’ll help you create a powerful first impression that hooks and engages your audience immediately, and we’ll transform you to deliver clearly, confidently and with impact.
Speak to Louise on +44 20 7018 0922 or email email@example.com to find out more and discuss your upcoming speech or presentation.
Contact us for a chat about how we can help you with your presenting.
What leaders say about Benjamin Ball Associates
"Essential if you are going to be a spokesperson for your business"
Senior Analyst, Sloane Robinson
"Being an effective communicator is essential to get your stock ideas across. This course is exactly what's needed to help you do just that!"
CEO, Blast! Films
“Our investment in the coaching has paid for itself many times over.”
Corporate Finance House
“You address 95% of the issues in a quarter of the time of your competitor.”
“Good insight and a great toolbox to improve on my presentations and delivery of messages to not only boards, analysts and shareholders but to all audiences”
“We had a good story to tell, but you helped us deliver it more coherently and more positively.”
CEO, IPSO Ventures
“Ben did a great job on our presentation. He transformed an ordinary set of slides into a great presentation with a clear message. Would definitely use him again and recommend him highly.”
“Moved our presentation into a different league and undoubtedly improved the outcome and offer we received.”
Head of IR, Equinox
“A fantastic job reviewing and transforming our marketing material and helping us get our message across with clarity to potential investors.”