The Challenge:
A rapidly emerging small-cap company with a dominant position in its core business approached Alpha to address extremely negative investor confidence through an “investment phase.” The company had few direct peers and had also invested the majority of its profits over the prior three years in a new product that could dramatically shift the company’s profile.
Alpha’s Solution:
- The Alpha team developed a strategic approach to support both the existing investor relations program, as well as the company’s future strategic investor relations needs when the new product would become a meaningful revenue contributor.
- This evolution would result in the client shifting from a product/device company into the Software as a Service (SaaS) industry.
- To build the strategic investor relations plan, our team:
- Evaluated the strengths and weaknesses of the current shareholder profile.
- Performed a comprehensive Wall Street perception study and presented the analysis to the board of directors.
- Created impactful investor materials.
- Evaluated the last two years of sell-side sponsored NDRs/conferences to assess meeting quality and results.
- Developed buy-side and sell-side targeting priorities along with a comprehensive engagement strategy and calendar for the next six quarters to drive higher ROI engagement.
- This work was subsequently presented to the Board of Directors and received significant praise as the company’s first ever strategic IR plan.
- Alpha then supported the company for the next few years, overhauling all of its IR materials, hosted/planned its first ever Investor Day, developed its first ever multi-year guidance approach with inherent flexibility to deliver multiple ways, etc.
Results:
- Alpha’s strategic framework and counsel appropriately balanced short-term needs with the long-term transition that was expected in the business.
- The plan focused on rapidly rebuilding the credibility of the management team and six quarters later, the company’s stock appreciated several hundred percent through the strength of the investor relations plan, the performance of the company, and Wall Street’s broad recognition of this exciting transformation.
- This work also directly culminated in the initiation of coverage by several new sell-side analysts within the first year of engagement.
- The company ultimately rebranded given the overwhelming success of the new division/products.
