The Challenge:
A highly successful and profitable small-cap business, with an award-winning management team and significant insider ownership, partnered with Alpha to separate from its SPAC sponsors and transition into an independent, publicly traded entity. Faced with a higher redemption rate than expected and a sharp pullback in market enthusiasm for SPACs, the company was left with significantly less capital than expected to continue its acquisition-based strategy. New to the public markets with limited recognition, the company needed to quickly establish credibility in an environment where few understood its value proposition.
Alpha’s Solution:
- Serving as the outsourced IR function, Alpha worked closely with management and spoke with several members of the team to understand the business, with the objective of establishing both credible and aspirational investment appeals.
- Alpha developed both near- and long-term plans for the company’s investor relations and communications program, including a full suite of best-practice investor materials spanning the IR website, investor presentation, and fact sheet.
- Given the high redemption rate, Alpha immediately hit the ground running in identifying prospective investors that could bring support to the share price from supportive, high quality long-term investors while also generating much needed share liquidity from hedge funds who recognized early on the predictability of the business and its ability to generate consistent organic and inorganic top line growth and consistently improve profitability in a largely macro-immune industry.
- With only a few weeks scheduled between the separation date and Form 10-Q due for the most recent calendar quarter, Alpha implemented a dry-run of the quarterly earnings process in conjunction with the finance and internal communications teams. This included the drafting of prepared remarks, a press release with management quotes, and supplementary slides.
Results:
- Alpha helped management build critical relationships with both the buy- and sell-side to improve visibility with Wall Street, earned research coverage from a non-sponsor bank, and expanded the shareholder base with high quality, long-term focused investors.
- Over the course of Alpha’s several year engagement as the outsourced IR function, our team has taken nearly all initial investor conversations to educate prospective investors prior to meeting with management. This has helped the management team save valuable time that they can use more appropriately to run the business.
- The Alpha team has become a trusted advisor to both the CEO and CFO on matters ranging from shareholder activism, financial guidance, and complexities of public company life.
